Mandatory Modvat declaration for actual inputs barred credit on maize starch when only battery grade starch was declared.

Modvat credit under Rule 57G required a specific declaration for the actual input intended to be used. A declaration filed for battery grade starch did not cover maize starch, which fell under a different tariff heading, and the distinction between the two starches made separate disclosure necessary before credit could be taken. The declaration requirement was treated as mandatory, so credit could not be availed on maize starch without filing the required declaration. The departmental appeal therefore succeeded.

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Issues: Whether Modvat credit could be denied where the assessee had not filed a declaration under Rule 57G for maize starch used as an input, although a declaration had been filed for battery grade starch.

Analysis: Rule 57G(1) required every manufacturer intending to take credit on inputs under Rule 57A to file a declaration specifying the final products and the inputs intended to be used. The inputs actually received were maize starch falling under a different tariff heading from the declared battery grade starch. The requirement to file the declaration was treated as mandatory, and the use of different types of starches made a specific declaration necessary before availing Modvat credit.

Conclusion: The assessee was not entitled to Modvat credit on maize starch without filing the required declaration, and the departmental appeal succeeded.

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