Modvat credit and declaration defects: credit cannot be denied where classification lists disclose inputs, final products and intent to claim credit.

Modvat credit cannot be denied solely because a separate initial declaration was not filed under Rule 57Q, where the classification list itself disclosed the relevant inputs and final products and clearly showed the intention to claim credit. The Tribunal followed its earlier decisions and treated the later filing of the Rule 57G declaration as supporting the claim. On those facts, the absence of an independent declaration at the first stage did not justify refusal of credit, and the assessee's entitlement was sustained.

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Issues: Whether Modvat credit could be denied merely because the relevant inputs were not separately declared under Rule 57Q when the classification list disclosed the final products and the intention to avail credit, and a subsequent Rule 57G declaration was filed.

Analysis: The Tribunal relied on its earlier decisions holding that credit is available where the classification list itself clearly indicates the inputs and final products and shows the intention to claim credit, even if a separate declaration was not initially filed. The later filing of the separate declaration supported the claim, and the absence of an independent declaration in the first instance did not justify denial of credit in the facts of the case.

Conclusion: Modvat credit was admissible to the assessee, and the denial of credit was unsustainable.

Ratio Decidendi: Where the classification list clearly discloses the relevant inputs and final products and evidences the intention to avail Modvat credit, credit cannot be denied solely for want of a separate declaration at the initial stage.

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