Modvat credit requires correct declaration and classification; minor description changes will not save an incorrect invoice entry.

Modvat credit on HDPE films and rolls was held inadmissible because the inputs were not covered, specifically or generally, by the declaration in force when received. The attempt to rely on the declared tariff heading failed since the goods did not fall under Heading 3917 at the material time and were instead classifiable under Headings 3920 or 3921. The incorrect classification shown in the supplier's invoice also defeated the plea that the discrepancy was only a minor variation in description. Credit was therefore not available where both the declaration and the invoice classification were inconsistent with the actual goods.

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Issues: Whether Modvat credit on HDPE films and rolls was admissible when the goods were not specifically declared under the relevant declaration and were misclassified in the invoice.

Analysis: The declaration in force on the date of receipt of the inputs did not specifically or even generally cover plastic rolls as such. The assessee's reliance on the declared tariff heading was rejected because the goods in question did not fall under Heading 3917 at the material time; HDPE rolls were classifiable under Headings 3920 or 3921. Since the supplier's invoice showed an incorrect classification, the plea of only a minor variation in description could not be accepted.

Conclusion: The credit was not admissible and the Revenue's challenge succeeded.

Ratio Decidendi: Modvat credit cannot be sustained where the inputs were not covered by the declaration in force and the classification relied upon is itself incorrect, so that the plea of minor descriptive variation does not arise.

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