Modvat credit cannot be denied for a mere misdescription when the correct tariff heading was declared

Modvat credit could not be denied where the declaration stated the correct tariff heading for copper wire but misdescribed the input as refined copper bars. The discrepancy was only in the description, not in the substantive declaration requirement, because tariff heading 74.08 clearly covered copper wire and the authorities had accepted the declaration without objection when filed. The mismatch was treated as a factual mistake that did not defeat entitlement. Credit was therefore allowed with consequential relief.

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Issues: Whether Modvat credit could be denied merely because the declaration mentioned the input as refined copper bars instead of refined copper wire, when the correct tariff heading was stated.

Analysis: The declaration contained the correct tariff heading for copper wire, and the discrepancy was only in the description. The authorities had accepted the declaration without objection at the time of filing. Since tariff heading 74.08 covered copper wire and did not cover bars, the entry made the nature of the input sufficiently clear. The mismatch was therefore a factual mistake in description, not a failure going to the substance of entitlement under the declaration requirement.

Conclusion: Denial of Modvat credit was not justified, and the assessee was entitled to the benefit with consequential relief.

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