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Issues: Whether Modvat credit on capital goods could be denied where the declaration under Rule 57T was filed beyond the permissible period.
Analysis: The scheme of Rule 57T required the declaration to be filed within the stipulated time from the date of receipt of the capital goods, with condonation available only within the limited period prescribed by the rule. The appellant had received the capital goods and filed the declaration much later, after the outer time limit had expired. The fact that production had commenced and registration was obtained later did not enlarge the statutory time frame, since there was no legal impediment to filing the declaration earlier. The limited condonation power could not be used to validate a declaration filed beyond the maximum period contemplated by the rule.
Conclusion: The appellant was not entitled to Modvat credit on the capital goods covered by the delayed declaration.
Final Conclusion: Compliance with the prescribed declaration period was mandatory for availing Modvat credit on capital goods, and a declaration filed beyond the maximum condonable period could not confer eligibility.
Ratio Decidendi: Where a statutory credit scheme prescribes a time-bound declaration with only limited condonation, belated filing beyond the outer limit renders the assessee ineligible for the credit.
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