Deemed credit under Central Excise rules cannot be refused merely for absence of an unnecessary declaration.

A specific deemed credit scheme under the Central Excise Rules allowed credit on identified iron and steel stocks without production of duty-paying documents. Because the scheme operated as an exceptional facility distinct from the ordinary Modvat mechanism, credit could not be denied merely for non-filing of a declaration under Rule 57G where that declaration was not required by the scheme. The stated legal position is that when the notified deemed credit order itself dispenses with documentary proof of duty payment, absence of a separate declaration does not defeat entitlement to credit.

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Issues: Whether deemed credit under the specific deemed credit order could be denied for want of a declaration under Rule 57G of the Central Excise Rules, 1944.

Analysis: The deemed credit scheme was framed under the second proviso to Rule 57G(2) and specifically contemplated credit on identified stocks of iron and steel materials without production of duty-paying documents. The provision and the notified scheme operated as an exceptional facility distinct from the ordinary Modvat mechanism. Since the inputs covered by the order were the very materials for which deemed credit was allowed, and the order itself dispensed with documentary proof of duty payment, denial of credit solely because a separate declaration had not been filed was not justified.

Conclusion: The denial of deemed credit for absence of a declaration was unsustainable and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Where a specific deemed credit scheme under the Central Excise Rules allows credit without production of duty-paying documents, credit cannot be denied merely for non-filing of a declaration that is unnecessary under that scheme.

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