Modvat credit remains admissible when inputs precede Rule 57G declaration, despite contrary single-member views.

Modvat credit could not be denied merely because inputs were received before the declaration under Rule 57G of the Central Excise Rules, 1944, where receipt of inputs was undisputed and the only issue was the timing of filing the declaration. The Tribunal followed earlier Division Bench authority holding that credit remained admissible in such circumstances and declined to adopt a contrary Single Member view. On that basis, denial of Modvat credit was unsustainable and credit was held admissible to the assessee.

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Issues: Whether Modvat credit could be denied merely because the inputs were received before the filing of the declaration under Rule 57G of the Central Excise Rules, 1944.

Analysis: The receipt of inputs was not in dispute and the only controversy was the timing of the declaration under Rule 57G. The Tribunal followed earlier Division Bench decisions holding that Modvat credit remains admissible even if the inputs were received before filing the declaration. A contrary view taken by a Single Member Bench was not preferred in the face of the Division Bench authority.

Conclusion: Modvat credit was admissible and the denial of credit was unsustainable, in favour of the assessee.

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