Modvat credit eligibility under Rule 57G survives a separate Rule 57H rejection when post-declaration receipt is shown.

Modvat credit under Rule 57G remained available where inputs were received after the declaration was filed, and a rejection of a separate Rule 57H request did not by itself defeat that entitlement. The Rule 57H refusal was confined to its own conditions and did not determine credit admissibility under Rule 57G. The record did not sustain the finding that the inputs were received before the declaration, especially where departmental correspondence referred to invoices and RG-23A entries and no earlier finding had negated post-declaration receipt. Reliance on statements from prior pleadings without proper proof was also impermissible, so denial of credit, and the resulting demand and penalties, could not stand.

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Issues: Whether the assessee was entitled to avail and utilize Modvat credit under Rule 57G where the inputs were received after filing the declaration, and whether rejection of the request under Rule 57H barred such credit.

Analysis: The declaration under Rule 57G had already been filed, and the rejection under Rule 57H was confined to credit for inputs received before the declaration or within the conditions of that rule. The record showed that the department rejected the Rule 57H request because the claim did not satisfy its own conditions, which supported the view that Rule 57H was inapplicable to inputs received after the declaration. The order rejecting Rule 57H credit did not decide or negate the separate entitlement under Rule 57G. The finding that the assessee failed to prove receipt of inputs after the declaration was not sustainable, as the departmental correspondence itself referred to invoices and RG-23A records and no finding was recorded in the earlier order that the inputs had been received before the declaration. Reliance on statements from earlier pleadings was also not permissible in the absence of proper proof.

Conclusion: The assessee was entitled to avail and utilize the credit under Rule 57G, and the demand and penalties based on denial of that credit could not stand.

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