Condonation of delay in Rule 57G declaration allowed proforma credit to be treated as Modvat credit.

Delay in filing the declaration under Rule 57G(5) of the Central Excise Rules, 1944 was condoned in accordance with CBEC Circular No. 267/69/95-CX.8 dated 23-6-95, which dealt with delayed declarations. A delay of about 16 days was accepted because the authority followed the Board's instructions, and the proforma credit was permitted to be treated as Modvat credit. The operative effect was that the assessee obtained the benefit of Modvat credit despite the delayed declaration.

---

---

Issues: Whether delay in filing the declaration under Rule 57G(5) of the Central Excise Rules, 1944 could be condoned and the proforma credit allowed to be treated as Modvat credit.

Analysis: The Commissioner relied on the CBEC Circular No. 267/69/95-CX.8 dated 23-6-95 dealing with condonation of delay in filing the declaration under Rule 57G(5). The delay was about 16 days, and the declaration was accepted in terms of the Board's directions. The record showed that the authority had followed the instructions of the Board and had permitted the proforma credit to be treated as Modvat credit.

Conclusion: The delay was validly condoned and the assessee was entitled to have the proforma credit treated as Modvat credit.

---