Modvat credit for duty-paid inputs cannot be denied for minor description or sub-heading differences when the goods are otherwise identifiable.

Modvat credit cannot be denied merely because the declared description or Chapter 72 sub-heading of hot rolled steel strips differs from the inputs actually received, where the goods are duty-paid and otherwise identifiable. A minor variation in width causing a difference in description or classification was treated as insufficient to defeat credit when the duty-paid character of the inputs was not in dispute. On that basis, the credit was held admissible to the assessee.

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Issues: Whether Modvat credit could be denied merely because the declared description and sub-heading of the hot rolled steel strips differed from those of the inputs actually received, when the inputs were duty-paid and otherwise identifiable.

Analysis: The inputs were not in dispute as duty paid and were hot rolled steel strips. The only difference was in width, which led to a variation in description and a corresponding difference in sub-heading under Chapter 72. A minor variation of this nature, without dispute as to the duty-paid character of the inputs, was held insufficient to deny Modvat credit.

Conclusion: Modvat credit could not be disallowed on the ground of such minor variation in description or sub-heading, and the credit was admissible to the assessee.

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