Prior declaration of inputs sustained Modvat credit; a later clarificatory letter did not justify denial.

Modvat credit could not be denied where the inputs had already been declared in the assessee's declaration before credit was taken. The later letter only clarified the earlier declaration and did not change the position that the castings were disclosed in advance. On that factual basis, prior declaration was sufficient and denial of credit was unwarranted; the appeal was allowed.

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Issues: Whether Modvat credit could be denied on the ground that the inputs were not declared before availment of credit.

Analysis: The inputs were castings and had been disclosed by the assessee in the declaration dated 22-11-1993, which preceded the taking of credit. The subsequent letter merely clarified the earlier declaration and did not alter the fact that the inputs had already been declared. On that basis, denial of credit was unwarranted.

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

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