Modvat credit cannot be denied solely because inputs were received before the Rule 57G declaration was filed.

Rule 57G requires a manufacturer to file the prescribed declaration and obtain dated acknowledgement before taking Modvat credit on inputs, but it does not bar credit merely because the inputs were received before the declaration was filed. Where the declaration was filed on 16-12-1986 and credit was taken only on 18-12-1986, denial of credit solely on the basis of earlier receipt of inputs was not justified. However, because the record did not establish the nature of the inputs or the correctness of the credit, the matter required fresh verification by the original authority and reconsideration on remand.

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Issues: Whether Modvat credit was admissible where the specific declaration under Rule 57G was filed before availing credit, though the inputs had been received earlier.

Analysis: Rule 57G requires a manufacturer to file a declaration and obtain a dated acknowledgement before taking credit of duty paid on inputs. The rule does not contain any prohibition against availing credit merely because the inputs were received before the declaration was filed. As the appellant had filed the necessary specific declaration on 16-12-1986 and took credit only on 18-12-1986, the credit could not be denied solely on the ground of prior receipt of inputs. Since the record did not show verification of the nature of the inputs and the correctness of the credit, the matter required examination by the original authority.

Conclusion: The appellant was entitled in principle to Modvat credit, but the impugned order was set aside and the matter was remitted for fresh verification and reconsideration.

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