Deemed Modvat credit cannot be denied where documentary evidence proves timely filing of the required declaration.

Deemed Modvat credit under Notification No. 29/96-C.E. (N.T.) could not be denied merely because the declaration under Rule 57G was disputed. The decisive question was whether the declaration had in fact been filed, and the assessee produced an acknowledged copy dated 13-9-96, a receipt-register entry for a Modvat declaration, and the Range Office copy confirming receipt on that date. This documentary evidence outweighed the divisional register entry dated 17-9-96. The basis for denial was therefore unsustainable, and the credit claim was allowed in favour of the assessee.

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Issues: Whether deemed Modvat credit under Notification No. 29/96-C.E. (N.T.) could be denied on the ground that the declaration under Rule 57G of the Central Excise Rules, 1944 was not filed.

Analysis: The entitlement to deemed credit turned on whether the required declaration had in fact been submitted. The assessee produced an acknowledged copy of the declaration dated 13-9-96, a receipt-register entry showing receipt of a Modvat declaration, and the Range Office copy forwarded by the Deputy Commissioner containing confirmation by the then Range Superintendent that the declaration had been received on 13-9-96. In the face of this documentary material, the mere fact that the divisional receipt register showed an entry dated 17-9-96 did not negate receipt of the declaration on 13-9-96. The basis on which the lower authority had denied credit was therefore not sustainable.

Conclusion: The denial of deemed Modvat credit was unsustainable; the issue was decided in favour of the assessee.

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