Substantial compliance with Rule 57T sustained Modvat credit on capital goods despite later supplementary declaration.

Rule 57T required disclosure of the capital goods, the final product, their specific use, and an undertaking against exclusive use in exempted manufacture. The assessee filed an initial declaration and later supplied further particulars by correspondence, which was treated as a modification and extension of the original filing. The Tribunal held this amounted to substantial compliance, and that insisting on only the later declaration would be hyper-technical. It also noted the rule permitted filing within one month late, supporting the view that the declaration was filed in time for practical purposes. Modvat credit on the capital goods was therefore admissible for the disputed period.

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Issues: Whether the assessee had complied with Rule 57T of the Central Excise Rules, 1944 for availing Modvat credit on capital goods, and whether credit could be denied for want of a later comprehensive declaration.

Analysis: Rule 57T required disclosure of the description of the capital goods, the description of the final product, the specific use of the capital goods, and an undertaking that the goods would not be used in a plant manufacturing exempted goods exclusively. The assessee had filed an initial declaration on 29-6-1994 and thereafter furnished further particulars through subsequent correspondence. The later declaration was treated as a modification and extension of the earlier declaration. The Tribunal held that the requirement was substantially complied with and that insisting on the later declaration alone would be hyper-technical. The rule also contemplated filing within one month late, supporting the assessee's plea that the declaration was within time for practical purposes.

Conclusion: The declaration was held to be in time and sufficient for Rule 57T, and the assessee was entitled to Modvat credit on capital goods for the disputed period.

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