Modvat credit cannot be denied for late Rule 57T declaration where the defect is only procedural and the amendment applies.

Modvat credit could not be denied solely because the declaration under Rule 57T was filed after receipt of the goods where Notification No. 7/99-C.E. (N.T.) was treated as applicable to pending matters. The amendment was applied in line with the Court's approach to the analogous Modvat provision, so that a procedural defect in timing did not defeat the credit claim. On that basis, the declaration lapse was treated as non-fatal and the credit remained admissible where the substantive entitlement was otherwise established.

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Issues: Whether Modvat credit could be denied merely because the declaration under Rule 57T was not filed before receipt of the goods, in view of the amendment brought by Notification No. 7/99-C.E. (N.T.) dated 09-02-1999.

Analysis: The amended rule was treated as applicable to pending matters. The amendment was read in a manner similar to the earlier amendment considered by the Court in relation to the analogous Modvat provision, and the benefit was extended where the declaration defect was procedural rather than fatal to the credit claim.

Conclusion: The denial of Modvat credit on the ground of non-filing of the declaration before receipt of goods was not justified, and the credit was held admissible in favour of the assessee.

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