Modvat credit cannot be denied for tariff classification mismatch where the capital goods are otherwise clearly identified.

Modvat credit on capital goods could not be denied merely because the excise classification in the purchase invoice differed from the classification stated in the declaration filed under Rule 57-T. The declaration requirement was limited to the particulars of the capital goods, meaning their commercial identity, specifications, or distinguishing features, and did not require the assessee to determine the exact tariff classification. A classification mismatch alone would create uncertainty in the Modvat scheme. Credit was therefore held to be admissible where the identity of the goods was otherwise clear.

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Issues: Whether Modvat credit on capital goods could be denied merely because the excise classification mentioned in the purchase invoice differed from the classification stated in the capital goods declaration filed under Rule 57-T.

Analysis: Rule 57-T required a manufacturer intending to take credit of duty paid on capital goods under Rule 57Q to file a declaration before receipt of the goods indicating the particulars of the capital goods. The requirement was confined to the particulars of the goods and did not speak of excise classification particulars. The expression "particulars" was held to mean the commercial identity, specification, or other distinguishing features of the goods, not the precise tariff classification. The buyer could not be expected to authoritatively determine the excise classification, which would be a matter for the seller and the excise authorities. Treating classification mismatch as a ground for denial would introduce uncertainty into the Modvat scheme.

Conclusion: Denial of Modvat credit on the basis of differing excise classification was unjustified. The order was set aside and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Where the governing declaration provision requires only the particulars of capital goods, Modvat credit cannot be refused solely because the tariff classification in the invoice differs from the classification mentioned in the declaration, if the identity of the goods is otherwise clear.

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