Modvat credit cannot be denied for an imperfect declaration when inputs are covered by the declared chapter and duty-paid receipt is unchallenged.

Modvat credit under Rule 57G could not be denied solely because the declaration was not detailed, where the declared chapter covered the inputs and the record showed no non-receipt or non-duty-paid character. The inputs, being LDPE rolls, fell within Chapter 39 already mentioned in the declaration, and the proper officer could be satisfied on receipt, duty-paid nature, and use in manufacture. A mere technical lapse in the declaration was held insufficient to defeat credit, and the denial was set aside in favour of the assessee.

---

---

Issues: Whether credit could be denied merely because the declaration filed under Rule 57G was not detailed, when the inputs were admittedly covered by the declared chapter and the record did not show non-receipt or non-duty-paid character of the goods.

Analysis: The appellant had filed a declaration mentioning Chapter 39, and the inputs in question, namely LDPE rolls, also fell under Chapter 39. The requirement of a detailed declaration was not treated as fatal where the proper officer could be satisfied about receipt of the inputs, their duty-paid nature, and their use in manufacture. The record disclosed no allegation or evidence that the goods were not duty paid or were not received. Rule 57G(13) was relied upon to hold that credit should not be denied on a mere technical lapse in declaration.

Conclusion: Credit could not be denied on the ground of imperfect declaration, and the denial of credit was set aside in favour of the assessee.

---