Modvat credit on silica mortar and fire clay mortars upheld where prior rulings continued to operate absent stay

Modvat credit on silica mortar, ramming mass and fire clay mortars was treated as admissible inputs under Rule 57A because the issue had already been decided in favour of the assessee by earlier Tribunal rulings and the Calcutta High Court. Pending reference applications or appeals did not alter that position in the absence of any stay, so those decisions continued to hold the field. The contrary view in the impugned order was therefore unsustainable, and the credit claim was accepted.

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Issues: Whether Modvat credit was admissible on silica mortar, ramming mass and fire clay mortars as eligible inputs under Rule 57A of the Central Excise Rules, 1944.

Analysis: The issue had already been decided in favour of the assessee by earlier Tribunal decisions and by the Calcutta High Court. Mere pendency of reference applications or appeals against those decisions, in the absence of any stay, did not prevent them from holding the field. The contrary view taken in the impugned order was therefore unsustainable.

Conclusion: The credit was admissible and the appeal succeeded in favour of the assessee.

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