Modvat credit entitlement upheld where declaration and letter sufficiently informed the Department about copper wire bars as input.

Modvat credit could not be denied where the input fell under the tariff heading already declared and the Department had been informed through the declaration and clarificatory letter that copper wire bars were being received for use in manufacture. On a combined reading of those documents, the declaration requirement was treated as substantially complied with, so the credit was held admissible and denial was not justified.

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Issues: Whether Modvat credit could be denied on the ground that a separate declaration for copper wire bars had not been filed before taking credit.

Analysis: The input in question fell under the tariff heading already declared by the assessee, and the Department had been informed through the declaration and the clarificatory letter that copper wire bars were being received for use in the manufacture of the final products. On a combined reading of the documents, there was sufficient intimation to the Department of the nature of the input, and the requirement of declaration was treated as substantially complied with.

Conclusion: The denial of Modvat credit was not justified and the credit was held admissible to the assessee.

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