Transitional MODVAT credit remains available for eligible inputs received before declaration filing under the general procedural rule.

Rule 57H allowed transitional MODVAT credit on duty-paid inputs received before filing the Rule 57G declaration, and that transitional entitlement was not defeated by later filing of the declaration. The provision operated notwithstanding the general procedural requirement in Rule 57G, and no condition precedent required the declaration to be filed within 1-3-1986 to 31-3-1986. On the stated facts, inputs received during the transitional window qualified for credit, so the assessee remained entitled to MODVAT relief under Rule 57H.

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Issues: Whether MODVAT credit under the transitional provision was available for inputs received between 1-3-1986 and 31-3-1986 without filing the declaration under Rule 57G before 31-3-1986.

Analysis: Rule 57H, dealing with transitional arrangements, permits credit of duty paid on inputs received before filing a declaration under Rule 57G. The provision operates notwithstanding the other procedural requirement in Rule 57G, and nothing in Rule 57H makes filing of the declaration within the period 1-3-1986 to 31-3-1986 a condition precedent. On the admitted facts, the inputs were received within the specified transitional window, and the later filing of the declaration did not defeat entitlement to credit.

Conclusion: The assessee was entitled to MODVAT credit under Rule 57H, and the requirement of prior filing of the declaration under Rule 57G was not a bar in the facts of the case.

Final Conclusion: The transitional MODVAT benefit was held available for eligible inputs received during the specified period, and the departmental challenge failed.

Ratio Decidendi: Where a transitional Modvat provision expressly allows credit of duty on inputs received before filing a declaration, the benefit cannot be denied merely because the declaration under the general procedural rule was filed later.

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