Modvat credit declaration requirements: whether listing an eligible tariff item alone is enough, or use in manufacture must also be shown.

For availing Modvat credit, the central question is whether an assessee's declaration is sufficient merely because it specifies a tariff item eligible for credit, or whether the input must also be shown to be used in or in relation to manufacture of the final product. The matter was not decided on the merits; instead, the application was disposed of by framing and forwarding this question of law to the High Court.

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Issues: Whether, for availing Modvat credit, it is sufficient for an assessee only to specify a tariff item eligible for Modvat credit in the declaration filed under the relevant rules, or whether it is also necessary to show that the input mentioned therein is used in or in relation to the manufacture of the final product.

Outcome: The application was disposed of by framing and forwarding the above question of law to the High Court.

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