Jurisdiction over Modvat credit transfer upheld where amended rules conferred power on the Assistant Commissioner after remand.

The Assistant Commissioner was competent to decide a request for transfer of unutilised Modvat credit from RG 23 to RG 23A because the matter had already been remanded for fresh consideration and no modification of that remand direction had been sought by the Revenue. By the time of adjudication, Rule 57H had been amended by Notification No. 8/93-C.E. (N.T.) to confer the relevant power on the Assistant Commissioner. No illegality in the transfer of unutilised Modvat credit was shown, and the transfer order was upheld.

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Issues: Whether the Assistant Commissioner had competence to decide the request for transfer of unutilised Modvat credit from RG 23 to RG 23A, and whether the order allowing such transfer was illegal.

Analysis: The request had earlier been remanded to the Assistant Commissioner for consideration, and no correction or modification of that remand direction had been sought by the Revenue. At the time of adjudication, Rule 57H had been amended by Notification No. 8/93-C.E. (N.T.) dated 02.11.1993, and the power to decide such requests stood conferred on the Assistant Commissioner. No illegality in the transfer of unutilised Modvat credit was shown.

Conclusion: The Assistant Commissioner was competent to decide the matter, and the order allowing transfer of unutilised Modvat credit was upheld against the Revenue.

Ratio Decidendi: Where a remand order directs fresh adjudication and the governing rule is amended to confer jurisdiction on the adjudicating authority, the authority is competent to decide the transfer of unutilised Modvat credit.

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