Modvat credit cannot be denied where the declared description sufficiently identifies the input despite a tariff classification dispute.

Modvat credit could not be denied merely because the input was described in the declaration as "tin plate" while the department treated the goods as lacquered tin plate and differently classifiable. The Tribunal held that the declaration was sufficient to identify the input and put the department on notice of the goods received, and that a tariff classification dispute did not by itself justify denial of credit where the declared description covered the material actually received. Credit was therefore allowed and the assessee succeeded.

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Issues: Whether Modvat credit could be denied on the ground that the input was described in the declaration as "tin plate" when the department contended that the goods received were lacquered tin plate and classifiable differently.

Analysis: The description given in the declaration was held to be sufficient to identify the nature of the input and to inform the department of the goods in question. The Tribunal observed that the assessee could reasonably have described the goods as tin plate and that the availability of credit could not be denied merely because the goods might fall under a different tariff sub-heading. The classification dispute was treated as immaterial for denying credit where the declared description covered the input received.

Conclusion: Denial of Modvat credit on this ground was not justified; the assessee succeeded.

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