Modvat credit verification requires de novo adjudication when supporting documents have not been properly examined.

Entitlement to Modvat credit depends on proper examination and verification of the supporting documentary records. Where the available documents have not been adequately checked or admitted, and the appellate forum cannot satisfactorily complete that exercise, the matter should be remanded for fresh adjudication. The authority therefore set aside the order to the extent necessary and directed de novo consideration after verification of the records, with cooperation from the assessee to complete the process expeditiously.

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Issues: Whether the matter required remand for fresh adjudication because the documentary evidence necessary to decide eligibility to Modvat credit had to be examined and verified.

Analysis: The dispute arose in the second round of litigation and turned on whether the assessee could establish entitlement to Modvat credit on the basis of supporting documents. The appellate authority found that the documents had to be examined, verified, and admitted before any final decision could be reached. Since that exercise could not be satisfactorily undertaken at the appellate stage, fresh adjudication was considered necessary. The authority also directed the assessee to extend full cooperation so that the verification exercise could be completed expeditiously.

Conclusion: The matter was remanded for de novo adjudication.

Final Conclusion: The impugned order was set aside to the extent necessary and the dispute was sent back for fresh consideration after verification of the supporting records.

Ratio Decidendi: Where entitlement to Modvat credit depends upon verification of documentary evidence that has not been properly examined, the appropriate course is remand for de novo adjudication.

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