Modvat credit cannot be denied where filing of the declaration is supported by records and corroborative evidence of compliance.

Modvat credit could not be denied merely because the Rule 57G declaration was said not to have been filed where the assessee produced corroborative evidence of filing, including RG 23A records, defaced invoices and verification by the audit party. The explanation that the acknowledgement had been misplaced was supported by parallel proceedings for the same period, which had accepted the same position. On these facts, the plea of non-filing was rejected and the denial of credit was held unsustainable; the assessee's claim to Modvat credit was accepted.

---

---

Issues: Whether Modvat credit could be denied on the ground that the declaration under Rule 57G had not been filed, when the assessee asserted that the declaration had in fact been filed and the acknowledgement had been misplaced.

Analysis: The assessee produced corroborative material showing filing of the declaration, maintenance of RG 23A records and defaced invoices, and the parallel proceedings for the same period had accepted the explanation that the acknowledgement was misplaced. The records also showed that the audit party had verified the declarations and registers. In these circumstances, the evidence was found to favour the assessee, and the plea of non-filing was not accepted.

Conclusion: The denial of Modvat credit was not sustainable and the assessee's claim to credit was accepted.

---