Modvat credit cannot be denied for generic input descriptions where tariff classification and disclosure are otherwise sufficient.

Modvat credit should not be denied merely because inputs are described in generic terms, where the declaration discloses the relevant tariff heading and otherwise satisfies the disclosure requirement. A generic declaration was treated as adequate for verification by the Assistant Commissioner, despite the absence of specific names for Copper Strips and Copper Foils. On that basis, credit was allowed after verification and the penalty was held unsustainable and vacated.

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Issues: Whether Modvat credit could be denied for want of specific mention of the inputs in the declaration when a generic declaration and tariff heading had been filed, and whether the penalty imposed could survive.

Analysis: The declaration was treated as sufficient notwithstanding the absence of a specific description of Copper Strips and Copper Foils. The reasoning was that credit cannot be denied merely because the inputs were described in a general manner, particularly where the declaration disclosed the relevant generic heading and tariff classification. The cited decisions were followed and the declaration was held acceptable, subject to verification by the Assistant Commissioner.

Conclusion: The assessee was entitled to Modvat credit after verification, and the penalty was unsustainable and stood vacated.

Final Conclusion: The appeal succeeded on merits, with relief granted in respect of both credit eligibility and the consequential penalty.

Ratio Decidendi: Modvat credit should not be denied solely because the declaration describes inputs in generic terms rather than by specific item names, where the declaration otherwise satisfies the disclosure requirement and supports verification.

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