Modvat credit on duty-paid inputs upheld where the Superintendent's certificate satisfied the Rule 57G requirement.

Modvat credit cannot be denied where duty-paid inputs are received and used in manufacture, and a Superintendent's certificate establishes that receipt. The objection that the certificate was issued under Rule 57E was rejected because the substantive requirement for credit under clause (1) of sub-rule (3) of Rule 57G was satisfied. On that basis, the assessee was entitled to Modvat credit.

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Issues: Whether Modvat credit could be denied when the appellant had received duty-paid inputs evidenced by a certificate issued by the Superintendent of Central Excise, notwithstanding that the certificate was stated to have been issued under Rule 57E of the Central Excise Rules, 1944.

Analysis: The inputs were not in dispute as being duty paid, and there was no dispute that they were used in the manufacture of the final product. The certificate issued by the Superintendent of Central Excise established receipt of duty-paid goods. The objection that the certificate was issued under Rule 57E was rejected because the relevant requirement for availing Modvat credit was satisfied under clause (1) of sub-rule (3) of Rule 57G of the erstwhile Central Excise Rules, 1944.

Conclusion: Modvat credit could not be denied, and the assessee was entitled to the credit.

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