CENVAT credit challenge fails where the dispute turns on factual findings and no substantial question of law arises.

A challenge under Section 35G of the Central Excise Act, 1944 failed because the dispute over eligibility to CENVAT credit on classified goods turned on factual assessment of the items and their actual use. The High Court noted that the Revenue had not independently verified the nature of the goods or their ultimate utilisation, so the controversy was at most a mixed question of fact and law. As no independent substantial question of law arose from the Tribunal's findings, the appeal was not maintainable on that basis and the assessee retained the benefit of the order.

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Issues: Whether the Revenue's appeal under Section 35G of the Central Excise Act, 1944 raised any substantial question of law on the Tribunal's finding relating to the assessee's eligibility to CENVAT credit on classified goods and items.

Analysis: The appeal challenged the Tribunal's view that the Revenue had not independently verified the nature of the items or their ultimate usage for deciding eligibility to CENVAT credit. The issue turned on the factual assessment of the items in question and, at most, involved a mixed question of fact and law. Such a controversy did not disclose an independent substantial question of law for consideration in an appeal under Section 35G of the Central Excise Act, 1944.

Conclusion: No substantial question of law arose. The appeal was not maintainable on that basis and failed.

Final Conclusion: The Revenue's challenge to the Tribunal's dismissal did not succeed, and the assessee retained the benefit of the order under appeal.

Ratio Decidendi: A challenge under Section 35G of the Central Excise Act, 1944 cannot succeed where the controversy is confined to factual findings or a mixed question of fact and law and no substantial question of law arises.

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