Condonation of delay for declaration filing sustained, enabling Modvat credit where filing coincided with factory installation.

A declaration filed on the date the factory was installed could not be treated as belated, so there was no valid basis to deny Modvat credit for want of filing before that date. On that footing, the delay was condoned and the assessee was held entitled to Modvat credit, with consequential relief granted.

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Issues: Whether the assessee was entitled to condonation of delay in filing the declaration and consequent grant of Modvat credit.

Analysis: The declaration was filed on the date when the factory was installed and there was, therefore, no basis to treat it as belated. In the circumstances, denial of Modvat credit merely on the ground of non-filing of the declaration prior to that date was not justified.

Conclusion: The delay stood condoned and the assessee was entitled to Modvat credit. The appeal was allowed with consequential relief.

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