Modvat credit on stock inputs cannot be denied for delay where Rule 57H(1B) applies notwithstanding Rule 57G.

Rule 57H(1B) permits a manufacturer to claim Modvat credit on duty-paid inputs received immediately before the dated acknowledgment of the declaration, including inputs lying in stock, notwithstanding Rule 57G. The provision does not impose any six months' limitation for such stock inputs covered by Rule 57H(1B). Credit on inputs in stock at the time of filing the declaration therefore cannot be denied merely because the declaration was filed after six months, and the credit claim remains admissible.

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Issues: Whether credit on inputs lying in stock on the date of filing the Modvat declaration under Rule 57H could be denied on the ground of a six months' delay under Rule 57G.

Analysis: Rule 57H(1B) permits a manufacturer, notwithstanding Rule 57G, to file a declaration for availing credit of duty paid on inputs received immediately before the dated acknowledgment of the declaration, including inputs lying in stock. The rule does not prescribe any six months' limitation for such credit in respect of stock inputs covered by Rule 57H(1B).

Conclusion: The denial of Modvat credit on the ground of delay beyond six months was unsustainable and the credit claim was admissible.

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