Modvat credit denied where Rule 57G declaration failed to cover alloy steel rounds actually used in production.

Modvat credit was properly refused where the Rule 57G declaration identified the inputs only broadly as "iron and steel" and linked them to headings for flat rolled products of iron or non-alloy steel, while credit was claimed on alloy steel rounds. The declaration did not sufficiently identify the actual inputs used, and the mismatch between the declared description and the goods on which credit was taken justified denial of credit. A broad approach to declarations could not cure a description that failed to cover the relevant inputs. The appeal therefore failed.

---

---

Issues: Whether Modvat credit could be allowed when the declaration under Rule 57G described the inputs only as "iron and steel" with headings and sub-headings that did not cover alloy steel rounds on which credit was taken.

Analysis: The declaration filed under Rule 57G described the inputs only in broad terms as "iron and steel" and associated them with sub-headings relating to flat rolled products of iron or non-alloy steel. The goods on which credit was claimed were alloy steel rounds, which were not covered either by the description or by the stated headings. Although a broad approach to declarations had been accepted in some cases, the declaration here did not even broadly identify the relevant inputs, and the discrepancy between the declared headings and the goods actually used justified refusal of credit.

Conclusion: Modvat credit was rightly denied and the appeal failed.

---