Modvat credit on GP-1 remained valid within the extended transitional period, and an ex parte factual error was rectifiable.

Modvat credit on GP-1 remained available under the transitional notification regime, because the invoice system introduced by Notification No. 16/94 allowed continued credit on GP-1 up to 30-6-1994, and Notification No. 30/94 extended that facility to 31-12-1994. Credit taken on 1-11-1994 therefore fell within the permitted period and was validly availed. The appellate order also proceeded on the mistaken assumption that the credit was time-barred; since it was an ex parte order, that apparent factual error was treated as rectifiable.

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Issues: Whether Modvat credit on GP-1 was admissible where the credit was taken within the extended period permitted by the applicable notifications, and whether the ex parte order suffered from an apparent error warranting rectification.

Analysis: Notification No. 16/94 introduced the invoice system for availment of Modvat credit, while the existing practice of taking credit on GP-1 was continued up to 30-6-1994 and then extended further up to 31-12-1994 by Notification No. 30/94. The credit in question was availed on 1-11-1994, which fell within the extended period. The appellate order had proceeded on the erroneous assumption that the credit was taken beyond the permitted time. Since the order had also been passed in the absence of the appellant, the error was held to be rectifiable as an apparent error in an ex parte order.

Conclusion: The Modvat credit on GP-1 was held to be validly availed within the permitted period, and the assessee succeeded.

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