Modvat credit on fake invoices was remanded for de novo adjudication, with the impugned order set aside.

Irregular Modvat credit claimed on the basis of fake and fictitious invoices issued by non-existent manufacturing units was directed to be examined afresh, as the Tribunal treated the matter as covered by an earlier decision in similar cases. The impugned order was set aside and the dispute was remanded to the original adjudicating authority for de novo adjudication in light of the earlier observations. The stay petition was allowed, and the merits were left open for reconsideration at the fresh adjudication stage.

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Issues: Whether the appeal relating to irregular availment of Modvat credit on the basis of fake and fictitious invoices issued by non-existent and bogus manufacturing units should be decided on merits or remanded for fresh adjudication.

Analysis: The issue was treated as already covered by an earlier Tribunal decision in similar matters. In view of that decision, the impugned order was set aside and the matter was sent back to the original adjudicating authority for a de novo decision after considering the earlier observations.

Conclusion: The matter was remanded for fresh decision and the stay petition was allowed.

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