Modvat credit cannot be denied for a tariff-heading mismatch where declared inputs are used in the declared final product.

Modvat credit on declared inputs used in the manufacture of declared final products could not be denied merely because the tariff heading in the Rule 57G declaration differed from the tariff heading shown in the duty-paying documents. The Tribunal treated the mismatch as a technical discrepancy and accepted that the inputs and final product were duly declared, with actual use in manufacture not disputed. On that basis, the credit was held admissible and the appeals succeeded, with duty credit directed to be granted.

---

---

Issues: Whether Modvat credit could be denied merely because the tariff heading mentioned in the Rule 57G declaration did not tally with the tariff heading shown in the duty-paying documents, when the inputs were otherwise declared and used in the manufacture of the declared final product.

Analysis: The Tribunal noted that the inputs and final product were declared, and that the only objection was the mismatch between the tariff classification in the declaration and that in the documents accompanying receipt of the inputs. It relied on the settled principle that Modvat credit should not be refused on such a technical discrepancy when the declared inputs are admittedly used in the manufacture of the declared final product.

Conclusion: The credit could not be denied on the ground of tariff-heading mismatch, and the appellants were held entitled to the duty credit.

Final Conclusion: The appeals succeeded and the Modvat credit was directed to be granted.

Ratio Decidendi: Modvat credit on declared inputs used in the manufacture of declared final products cannot be denied merely because the tariff heading in the declaration does not match the tariff heading in the duty-paying documents.

---