Modvat declaration filing time runs from factory registration date, making capital goods credit claim timely and admissible.

For Modvat credit on capital goods under Rule 57T, the filing period for the declaration was reckoned from the date of factory registration under Rule 174, not from the earlier receipt of the capital goods. On the facts noted, the factory registration certificate was issued on 6 April 1999 and the declaration was filed on 7 May 1999, so the declaration was treated as within time and no adverse delay consequence arose. The assessee was therefore regarded as eligible for Modvat credit on the capital goods.

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Issues: Whether the declaration for capital goods Modvat credit under Rule 57T was filed within time, reckoned from the date of registration of the factory, and whether the credit was admissible.

Analysis: The Commissioner (Appeals) found that the factory registration certificate under Rule 174 was issued on 6-4-1999 and that the declaration was filed on 7-5-1999. On that basis, the time-limit for filing the declaration and seeking condonation of delay was held to run from the date of registration of the factory, not from the earlier receipt of capital goods. The finding was also treated as consistent with the Tribunal rulings relied on before the Tribunal.

Conclusion: The declaration was held to be within time and the assessee was held eligible for Modvat credit on the capital goods.

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