Modvat credit cannot be denied for delayed departmental acknowledgement when the assessee filed the declaration and precedent supports allowance.

Modvat credit under Rule 57T could not be denied merely because the departmental acknowledgement of the declaration was issued late, where the assessee had already filed the prescribed declaration and the delay was attributable to the Department. The Tribunal relied on its earlier binding decisions and the relevant Board circular, which supported allowing credit in such circumstances. On that basis, it held there was no factual or legal ground to distinguish the precedent and sustained the order granting credit.

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Issues: Whether credit under Rule 57T could be denied merely because the departmental acknowledgement of the declaration was issued late.

Analysis: The declaration under Rule 57T had been filed by the assessee, and the delay in issuing acknowledgement was attributable to the Department. The issue was governed by earlier Tribunal decisions and the relevant Board circular, which supported allowance of credit in such circumstances. The Tribunal treated its earlier rulings as binding and found no basis to distinguish them on the facts.

Conclusion: Credit could not be denied on account of delayed departmental acknowledgement, and the Revenue's challenge failed.

Final Conclusion: The order allowing Modvat credit was sustained and the Revenue's appeal was rejected.

Ratio Decidendi: Where the assessee has filed the prescribed declaration and the delay in acknowledgement is caused by the Department, credit cannot be denied solely for want of timely departmental endorsement when the governing precedent supports allowance.

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