Mandatory declaration for Modvat credit: informal intimation cannot replace the prescribed statutory filing requirement.

Filing the declaration under Rule 57G(1) was treated as a condition precedent for entering the Modvat scheme, not a mere procedural formality. Prior intimation or informal communication was held insufficient to satisfy the statutory declaration requirement. As a result, Modvat credit could not be availed without the prescribed declaration, and the Department's appeal succeeded. Compliance with the declaration requirement was therefore essential for entitlement to credit.

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Issues: Whether Modvat credit could be availed without filing the declaration required under Rule 57G(1) of the Central Excise Rules.

Analysis: Filing of the declaration under Rule 57G(1) was treated as a mandatory condition for entry into the Modvat regime and not as a mere formality. The prior intimation relied upon by the assessee was held insufficient to satisfy the legal requirement of declaration.

Conclusion: The assessee was not entitled to Modvat credit without filing the required declaration, and the Department's appeal succeeded.

Final Conclusion: Compliance with the prescribed declaration requirement was held to be essential for availing Modvat credit.

Ratio Decidendi: Where the statute makes filing of a declaration a condition precedent for availing Modvat credit, credit cannot be granted on the basis of mere intimation or informal communication.

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