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Issues:
Appeal against disallowance of Modvat Credit for the period April to October 1986 due to failure to file declaration under Rule 57G of Central Excise Rules. Analysis: The appeal was filed against the order-in-appeal disallowing Modvat Credit for the mentioned period. The Appellants argued that they were not properly guided by departmental officers at the beginning of the Modvat Scheme in 1986. They contended that they had submitted a price list with an endorsement under Modvat claim and provided classification lists and raw material details. The Collector (Appeals) acknowledged the filing of the classification list but held it did not suffice as a declaration under Rule 57G. The Appellants relied on precedents emphasizing a liberal view towards procedural lapses in new schemes. They also referred to a Board Circular allowing Modvat Credit upon filing a declaration with the authorities. The Revenue, represented by the SDR, maintained that the Modvat Credit was rightfully denied as Rule 57G mandated a formal declaration for availing the benefit. They cited tribunal cases where Modvat Credit was disallowed for failure to file declarations. Upon reviewing the submissions and records, the Tribunal found that while a declaration under Rule 57G was necessary for Modvat Credit, the Appellants had substantially complied with the provision. The Appellants had filed classification lists referencing the Modvat Scheme and engaged in correspondence regarding raw materials and final products with the Department. The Tribunal noted that the Appellants were not instructed to file a separate declaration under Rule 57G and that the provided information indicated compliance with the scheme's requirements. The Tribunal distinguished the cited tribunal cases as involving different contexts and commodities requiring detailed input descriptions, unlike the broad descriptions provided by the Appellants. Consequently, the Tribunal allowed the appeal, granting the Modvat benefit with consequential relief.
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