MODVAT credit cannot be denied for a clerical declaration error when receipt and use of the input are undisputed.

MODVAT credit on bitumen drums could not be denied merely because the declaration under Rule 57G described the item in the final-product column instead of the input column. The record showed actual receipt and use of the drums in relation to manufacture and packing, and the revenue did not dispute those substantive facts. The declaration error was only a mistaken description, so the procedural defect could not defeat credit where eligibility conditions were otherwise satisfied.

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Issues: Whether MODVAT credit on bitumen drums could be denied merely because the input was shown in the declaration under the column for final product instead of input.

Analysis: The only basis for denial was the alleged defect in the declaration filed under Rule 57G. The record showed that bitumen drums had in fact been received and used in relation to the manufacture and packing of bitumen, and the revenue did not dispute the receipt or use of the drums. The declaration error was only a mistaken description, while the substantive conditions for availing credit were satisfied.

Conclusion: The credit could not be denied on the ground of the declaration alone, and the issue was decided in favour of the assessee.

Ratio Decidendi: MODVAT credit cannot be denied for a mere procedural or clerical defect in the declaration when the substantive eligibility conditions and actual receipt and use of the input are undisputed.

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