Modvat credit delay on capital goods was condoned where installation was pending and the declaration gave adequate reasons.

Delay in filing the declaration for Modvat credit on capital goods was accepted where the goods had been received earlier but were not yet fit for use because installation by the supplier's engineering staff was required. The declaration dated 18-6-1996 was found to contain adequate reasons for the delayed filing, and the Board's Circular dated 7-3-1996 was applied to those facts. As a result, the delay was condoned and Modvat credit on the capital goods was allowed to the assessee.

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Issues: Whether the delay in filing the declaration for Modvat credit on capital goods was liable to be condoned and the credit allowed.

Analysis: The declaration explained that the capital goods had been physically received earlier but were not in working condition, requiring installation by the supplier's engineering staff before use. The declaration dated 18-6-1996 was found to contain adequate reasons for the delay, and the Board's Circular dated 7-3-1996 was held to apply to the facts of the case.

Conclusion: The delay in declaration was condoned and Modvat credit was allowed to the assessee.

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