MODVAT credit not denied for non-filing of Rule 57G declaration where the requirement was treated as directory.

MODVAT credit could be extended even where the declaration under Rule 57G of the Central Excise Rules, 1944 had not been filed, because the governing Supreme Court precedent treated that requirement as directory rather than mandatory. Applying that principle, the Revenue's challenge was rejected and the Tribunal's relief to the assessee was left undisturbed. The operative legal point is that non-filing of the Rule 57G declaration did not, by itself, bar MODVAT benefit where the requirement was not a mandatory condition under the applicable precedent.

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Issues: Whether MODVAT benefit could be extended suo motu despite non-filing of declaration under Rule 57G of the Central Excise Rules, 1944.

Analysis: The question stood covered by the Supreme Court decision relied upon in the judgment, which treated Rule 57G as directory and not mandatory. On that basis, the appellate challenge by the Revenue did not survive for further consideration.

Conclusion: The issue was decided against the Revenue and in favour of the assessee.

Final Conclusion: The Revenue's appeal failed and the Tribunal's view granting relief to the assessee was left undisturbed.

Ratio Decidendi: A declaration under Rule 57G of the Central Excise Rules, 1944 was not a mandatory condition for extending MODVAT benefit where the governing precedent treated the requirement as directory.

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