MODVAT credit cannot be denied for minor classification differences where the declaration substantially covers eligible inputs.

MODVAT credit could not be denied merely because the declaration described the input as "perfume" while some gate passes and the supplementary declaration referred to odiferous substances under Heading 3302.90. The description in the original declaration was treated as broad enough to cover perfumes and related odiferous mixtures, and the difference in tariff classification was held immaterial where both headings were otherwise eligible for MODVAT benefit. The supplementary declaration reinforced compliance with Rule 57G. On that basis, the declaration was held sufficient, credit was allowed, and the demand for reversal was set aside.

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Issues: Whether MODVAT credit could be denied on the ground that the declaration described the input as "perfume" while some gate passes and the supplementary declaration referred to odiferous substances classifiable under Heading 3302.90, and whether the declaration requirement under Rule 57G was satisfied.

Analysis: The inputs covered by the disputed credit were described in the gate passes as perfumes, and the original declaration also used the description "perfume". The difference between the tariff heading shown in the declaration and the heading in the gate passes was held to be immaterial where both headings were eligible for MODVAT benefit under Rule 57A. The description in the declaration was treated as sufficiently broad to cover perfumes as well as other odiferous substances and mixtures thereof. The supplementary declaration mentioning Heading 3302.90 reinforced the assessee's position, and the record did not justify denial of credit on a technical view of classification.

Conclusion: The declaration covered the disputed inputs, the requirements of Rule 57G were complied with, and MODVAT credit could not be denied. The denial of credit and the consequential demand for reversal were set aside in favour of the assessee.

Ratio Decidendi: Where the description in the declaration and the gate passes substantially covers the input, a mere difference in tariff classification does not defeat MODVAT credit if the input remains otherwise eligible for the benefit.

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