Actual reversal of Modvat credit must be proved by evidence; formula-based approximation is insufficient under the amnesty scheme.

Entitlement under an amnesty-based exemption scheme depended on proof that the actual Modvat credit and interest had been reversed before the cut-off date. A departmental formula was treated only as a quantification method, not as conclusive proof of compliance, and an approximation-based certificate was insufficient to establish actual reversal. The appellate order was set aside and the matter remanded to the Commissioner to examine additional evidence and verify whether the credited amounts and interest had in fact been reversed. If that factual claim is proved, the appellant is to receive the notification benefit.

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Issues: Whether the appellant was entitled to the benefit of the exemption notification under the Amnesty Scheme on proof that it had reversed the actual Modvat credit and interest, and whether the matter required reconsideration on evidence.

Analysis: The scheme required reversal of wrongly availed Modvat credit with interest before the cut-off date, and the departmental formula was only a quantification method. The material produced did not satisfactorily establish that the amounts reversed represented the actual credit taken, as the certificate relied upon was based on approximations rather than actuals. However, the appellant stated that it could produce supporting evidence before the Commissioner, and the Department had no objection to a remand for that limited purpose.

Conclusion: The matter was remanded to the Commissioner to examine the additional evidence and determine whether the actual credit and interest had been reversed. If so, the appellant was to receive the benefit of the notification.

Final Conclusion: The appellate order was set aside and the dispute was sent back for verification of actual reversal, leaving the appellant entitled to the notification benefit if the factual claim was proved.

Ratio Decidendi: Where entitlement to exemption under an amnesty-based scheme depends on proof of actual reversal of credit, the benefit cannot be granted on or formula-based approximation alone and must be tested on supporting evidence.

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