Modvat credit for declared steel castings was upheld where invoice descriptions matched the Rule 57G declaration.

Modvat credit could not be denied where the declaration under Rule 57G covered steel castings for manufacture of spares and the inputs received under the invoices were steel castings matching that description. The fact that a particular sub-heading was not mentioned did not defeat credit when the goods were otherwise identifiable from the declaration and invoices. On these facts, the denial of Modvat credit was unsustainable and the credit was admissible to the assessee.

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Issues: Whether Modvat credit could be denied on the ground that the inputs received under the invoices were not covered by the declaration filed under Rule 57G.

Analysis: The declaration specifically covered steel castings/C.S. castings for manufacture of spares for hoist. The inputs actually received were steel castings described as rope drums or output gears, and the supplier's general description also matched steel castings. The absence of a particular sub-heading reference did not matter where the actual goods fell within the description declared, and the identity of the inputs was sufficiently established by the declaration and invoices.

Conclusion: The denial of Modvat credit was unsustainable and the credit was admissible to the assessee.

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