Modvat credit cannot be denied for mere nomenclature differences where the declared description covers the input and classification is correct.

A Modvat declaration describing "Hydraulic Copy Turning Attachment with or without Power Pack and accessories of all types and sizes" was held wide enough to cover "Hydraulic Tracer Model Hitrace". The description was read with the product's technical literature, trade understanding and a Chartered Engineer's certificate, showing that the item functioned as a hydraulic tracer for copy turning with allied functions within the declared scope. Because the classification under Chapter Heading 8466.00 was not disputed, credit could not be denied merely on the basis of differing trade nomenclature. The disallowance of Modvat credit was therefore unsustainable.

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Issues: Whether the input described in the Modvat declaration as "Hydraulic Copy Turning Attachment with or without Power Pack and accessories of all types and sizes" covered "Hydraulic Tracer Model Hitrace", so as to entitle the appellant to Modvat credit.

Analysis: The declaration under Rule 57G was construed in the light of the product's technical literature, trade understanding, and the Chartered Engineer's certificate. The item in dispute was found to be a hydraulic tracer used for copy turning, with allied functions falling within the broad description already declared. The classification under Chapter Heading 8466.00 was not in dispute, and the denial was based only on nomenclature. The description in the declaration was held wide enough to include the disputed input, consistent with the departmental clarification that credit should not be denied merely because of a difference in trade nomenclature where classification is correct.

Conclusion: The disputed input was covered by the declaration, and the disallowance of Modvat credit was unsustainable.

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