Modvat credit cannot be denied for a tariff-entry mismatch when the input was already clearly declared under Rule 57G.

A variation in the tariff entry in a Rule 57G declaration does not, by itself, disentitle Modvat credit where the input description was already clearly declared. The declaration had identified the industrial laminated sheets of paper base, and the credit was denied only because the tariff description was not perfectly matched before later correction. On that basis, denial of Modvat credit was not sustainable.

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Issues: Whether Modvat credit could be denied on the ground that the declaration of inputs under Rule 57G had been filed with a variation in the tariff entry, though the description of the input was already declared earlier.

Analysis: A declaration under Rule 57G had been filed on 15-10-1989 and it specifically mentioned the industrial laminated sheets of paper base. The denial of credit was based only on the fact that the tariff entry description was not perfectly matched in the declaration and was later corrected. A variation in the tariff entry, when the description of the input is otherwise clear and the declaration has already been made, does not by itself disentitle Modvat credit.

Conclusion: The denial of Modvat credit was not sustainable, and the issue is decided in favour of the assessee.

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