Modvat credit on process inputs upheld where earlier Tribunal rulings remained operative despite Revenue reference applications.

Modvat credit was found admissible on Ramming Mass, Tundish Board, Lancing Pipe, Foundry Fluxes and Automatic Starter. The appellate authority's grant of credit was upheld because it had relied on earlier Tribunal decisions, and the mere filing of reference applications by the Revenue did not suspend the operation of those decisions. On the facts, the goods were accepted as eligible inputs and no infirmity was found in allowing credit, so the Revenue's challenge failed.

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Issues: Whether Modvat credit was admissible on Ramming Mass, Tundish Board, Lancing Pipe, Foundry Fluxes and Automatic Starter.

Analysis: The Commissioner (Appeals) had allowed credit by following earlier Tribunal decisions. The filing of reference applications by the Revenue did not by itself suspend the operation of those decisions. On the facts, the items were accepted as eligible for credit and no infirmity was found in the appellate order.

Conclusion: Modvat credit was held admissible on the disputed items and the Revenue's challenge failed.

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