Modvat credit requires proof of input receipt and utilisation; consolidated register entries alone are insufficient without proper records.

Modvat credit was treated as unavailable where the assessee made consolidated entries in RG-23A Part II but failed to maintain records showing receipt of inputs from time to time and their use in manufacture. A declaration under Rule 57H did not dispense with the requirement to prove actual receipt and utilisation of inputs, and without such evidence the credit could not be regarded as prima facie admissible. The disallowance was therefore sustained, with the matter remanded for fresh verification of input details and utilisation before any final allowance.

---

---

Issues: Whether Modvat credit could be allowed when the assessee had made consolidated entries in the RG-23A Part II register and had not maintained proper records evidencing receipt and utilisation of inputs, in the context of Rules 57H and 57G of the Central Excise Rules.

Analysis: The denial of credit was based on the assessee's failure to establish the receipt of inputs from time to time and their consumption in the manufacture of final products. The reversal by the appellate authority was found unsustainable because the declaration under Rule 57H by itself did not dispense with the need to maintain proper evidence of receipt and utilisation of inputs. In the absence of such records, the credit could not be treated as prima facie admissible.

Conclusion: The disallowance of Modvat credit was upheld, and the Revenue's appeal succeeded with a remand for fresh adjudication after verification of the input details and their utilisation.

---