Modvat credit on capital goods cannot be denied merely for non-filing of declaration where eligibility is otherwise satisfied.

Non-filing of a declaration under Rule 57Q was treated as a technical lapse and not a ground to deny Modvat credit where the duty-paid character of the goods was undisputed and the items otherwise satisfied the conditions for capital goods eligibility. The listed items were therefore held eligible for Modvat credit, and denial of credit solely for want of declaration was not justified. Revenue's appeal was dismissed.

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Issues: Whether the listed items were eligible capital goods for Modvat credit under Rule 57Q despite non-filing of declaration.

Analysis: Eligibility to Modvat credit was contested only on the ground that the assessee had not filed a declaration in respect of the items. The duty-paid character of the goods was not disputed. Non-filing of declaration was treated as a technical lapse that should not defeat substantive credit where the goods otherwise satisfied the entitlement conditions.

Conclusion: The listed items were eligible capital goods for Modvat credit under Rule 57Q, and the denial of credit solely for non-filing of declaration was not justified. The appeal by the Revenue was dismissed.

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