Modvat credit cannot be refused for a tariff-heading mismatch where the input goods are identifiable and classification is the only difference.

Modvat credit cannot be denied solely because the tariff heading in the declaration differed from the invoice where the input goods were identifiable and the only discrepancy was in classification after a chapter structure change. The identity of the goods was not in dispute, and the failure to update the declaration to match the revised sub-heading did not justify refusing credit on that ground alone. The denial of credit was therefore unsustainable, and the appeal was allowed.

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Issues: Whether Modvat credit could be denied merely because the tariff heading shown in the declaration under Rule 57G differed from the tariff heading shown in the invoice, when the goods were otherwise identical and the classification had changed.

Analysis: The goods received were the same as those earlier declared, but the chapter structure had changed and the correct classification of the input had shifted from one sub-heading to another. The declaration had not been updated to reflect the revised classification, yet the identity of the input was not in dispute. Where the goods are identifiable and the discrepancy is only in the tariff heading, credit cannot be refused on that ground alone.

Conclusion: The denial of Modvat credit was not sustainable, and the appeal was allowed.

Ratio Decidendi: Modvat credit cannot be denied solely because the tariff heading in the declaration differs from the invoice when the identity of the goods is established and the discrepancy is only in classification.

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