Modvat credit relates back after delayed declaration is condoned, so earlier credit entry remains valid.

Condonation of delay in filing the Modvat declaration validated the earlier credit entry and related it back to the original date on which credit was first taken. The Tribunal held that, once delay was condoned, the assessee could not be denied Modvat credit merely because the credit was not taken within six months from the date of condonation. The credit was therefore admissible, and the Revenue's challenge failed.

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Issues: Whether, after condonation of delay in filing the declaration, Modvat credit taken earlier could be treated as valid and deemed to have been taken on the original date.

Analysis: The credit had been taken initially before the delay in declaration was condoned. The Tribunal held that once the delay in filing the declaration was condoned, the effect was to validate the earlier credit entry and relate it back to the original date on which credit was first taken. On that basis, the assessee could not be denied the credit on the ground that it was not taken within six months from the date of condonation.

Conclusion: The credit was held admissible and the Revenue's appeal was rejected.

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