Procedural time-limit for Modvat declaration cannot defeat credit where bona fide filing was later regularised.

The time-limit for filing a Modvat declaration was treated as procedural, so a declaration first filed under Rule 57G and regularised under Rule 57Q was accepted as valid despite being beyond the stipulated period under Rule 57T. On the undisputed facts, the assessee had acted under a bona fide belief, and the original authority had already regularised the credit. The earlier Rule 57G declaration was therefore taken to satisfy the declaration requirement in the circumstances, and the assessee remained entitled to Modvat credit. Denial of the credit was unsustainable.

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Issues: Whether the declaration for Modvat credit, initially filed under Rule 57G and regularised under Rule 57Q, could be treated as valid despite being filed beyond the stipulated period under Rule 57T.

Analysis: The credit was originally claimed under Rule 57A after declaration under Rule 57G. The assessee acted under a bona fide belief and, on the facts not disputed by the Revenue, the original authority had regularised the credit under Rule 57Q. The time-limit for filing the declaration was treated as procedural, and the declaration first filed under Rule 57G was taken as a declaration under Rule 57T in the circumstances of the case. The earlier Tribunal ruling relied upon supported the assessee's entitlement to Modvat credit.

Conclusion: The delay in filing the declaration did not disentitle the assessee to Modvat credit, and the denial of credit was unsustainable.

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