Modvat credit on endorsed pre-1994 gate passes remained valid, with Revenue's challenge rejected.

Modvat credit could not be denied merely because gate passes were issued before 1-4-1994 and endorsed later, as the relevant documents remained valid for credit. The lower appellate authority had allowed the credit by following an earlier Tribunal ruling, and the Board's circular had already ed the Gujarat High Court view supporting that position. The mere pendency of reference petitions on the same issue did not justify departing from the settled interpretation. The Revenue's challenge therefore failed, and denial of credit was not sustained.

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Issues: Whether Modvat credit could be denied on gate passes issued before 1-4-1994 but endorsed after that date.

Analysis: The credit had been allowed by the lower appellate authority on the basis of an earlier Tribunal decision. The Board's circular had already accepted the view of the Gujarat High Court that such gate passes remained valid documents for availing credit. The pendency of reference petitions on the same point did not justify departure from a settled decision, and the Board's clarification supported the assessee's position.

Conclusion: The Revenue's challenge failed and the denial of credit was not sustained.

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