Modvat credit cannot be denied solely for delayed declaration where filing was later explained and supported by proper particulars.

Modvat credit could not be denied merely because the declaration was filed late, where the credit was taken only after filing and the assessee furnished an explanation for the delay. A Board circular clarified that credit should not be refused solely on the ground that the declaration was filed after receipt of capital goods, provided a proper declaration and delay explanation were available. The dispute was therefore covered by the circular, and denial of credit on delay alone was impermissible.

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Issues: Whether Modvat credit could be denied merely because the declaration was filed belatedly.

Analysis: The credit was taken only after the declaration had been filed and an explanation for the delay was furnished. The Board circular clarified that credit should not be denied solely because the declaration was filed after receipt of capital goods, though a proper declaration and explanation for delay were required. The case was therefore covered by the circular.

Conclusion: Modvat credit could not be denied only on the ground of delayed filing of the declaration.

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