Specific declaration required for Modvat credit on wires and cables used as battery connectors; general component descriptions were insufficient.

Modvat credit on insulated wires and cables used as connectors in the manufacture of electric storage batteries was denied because the declaration under Rule 57G did not specifically identify those goods. A general description of battery parts, containers, lids, components or Chapter 85 items was held insufficient where the inputs retained their own identity as wires and cables under Tariff Sub-heading 8544.00. Specific declaration of inputs was required for credit, so the assessee's claim failed and the Revenue's view was upheld.

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Issues: Whether insulated wires and cables used as connectors in the manufacture of electric storage batteries were covered by the declaration filed under Rule 57G, and whether Modvat credit could be availed on such goods.

Analysis: The declaration described the inputs as battery parts, including plates, containers, lids, other components, and other items covered under Chapter 85. The goods on which credit was taken were insulated wires and cables falling under Tariff Sub-heading 8544.00. Their use as connectors did not change their identity as wires and cables. A generic declaration of battery parts or other components did not amount to a specific declaration of wires and cables, and specific declaration of inputs was required for availing Modvat credit.

Conclusion: The insulated wires and cables were not covered by the declaration and Modvat credit was not admissible; the assessee's claim failed and the Revenue's position succeeded.

Final Conclusion: The appeal by the Department was allowed, the order of the Collector (Appeals) was set aside, and the Assistant Collector's disallowance of Modvat credit was restored.

Ratio Decidendi: For availing Modvat credit, the input must be specifically declared, and goods retain their own identity despite being used as connectors so that a general description of battery parts or components does not cover wires and cables.

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