Modvat credit on adhesive tapes cannot be denied merely for a tariff-heading mismatch where the input description is broad enough.

Modvat credit on adhesive tapes could not be denied merely because the supplier's invoices reflected a different chapter heading from the Modvat declaration. The declaration used the general description "adhesive tapes", which was treated as sufficient to cover adhesive tapes of whatever tariff classification, and the mismatch was only a matter of classification. The position was reinforced by Notification No. 7/99-C.E. (N.T.) dated 09-02-1999, under which even absence of declaration was not meant to defeat credit. On that basis, the discrepancy was not treated as a bar to availment of credit and the challenge to credit failed.

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Issues: Whether Modvat credit on adhesive tapes could be denied merely because the supplier's invoices showed a different chapter heading from that declared in the Modvat declaration.

Analysis: The declared input description was "adhesive tapes", and the dispute arose only from a difference in tariff classification between the declaration and the invoices. The classification of adhesive tapes may vary depending on their characteristics, and the declaration of the inputs by general nomenclature was treated as covering adhesive tapes of whatever classification. The law had also been liberalised by Notification No. 7/99-C.E. (N.T.) dated 09-02-1999, under which even absence of declaration was not to defeat credit. The discrepancy was therefore not treated as a bar to availment of credit.

Conclusion: The credit was held admissible and the Revenue's challenge failed.

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