Modvat credit admissible where inputs preceded declaration, if credit was taken only after dated acknowledgement under Rule 57G.

Modvat credit was held admissible where inputs were received before filing the Rule 57G declaration, so long as the manufacturer took credit only after obtaining the dated acknowledgement. The Tribunal applied its earlier view that Rule 57G did not bar credit on this ground alone and treated the procedural requirement as insufficient to defeat credit when no credit had been taken on receipt of the inputs. Finding the facts materially similar to the earlier decision relied upon by the Commissioner (Appeals), it rejected the Revenue's appeal.

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Issues: Whether Modvat credit was admissible where the inputs had been received before filing of the declaration, but the credit was taken only after receipt of the dated acknowledgement under Rule 57G.

Analysis: The Tribunal applied its earlier view that Rule 57G did not bar credit merely because the inputs had been received before the declaration, provided the manufacturer took credit only after obtaining the dated acknowledgement of the declaration. It also relied on the principle that the procedural requirement should not defeat the credit when the assessee had not taken credit on receipt of the inputs and had acted after acknowledgement of the declaration. The facts were found to be materially similar to the earlier decision relied upon by the Commissioner (Appeals).

Conclusion: Modvat credit was held admissible, and the appeal by the Revenue was rejected.

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