MODVAT credit on allegedly fake invoices was remanded for fresh adjudication on merits.

Denial of MODVAT credit based on invoices allegedly issued by non-existent or bogus manufacturing units was set aside, as the Tribunal treated the dispute as covered by its earlier remand ruling in a similar case. The impugned order was therefore interfered with and the matter was remanded to the original adjudicating authority for de novo consideration on the merits of the credit claim and the genuineness of the invoices.

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Issues: Whether denial of MODVAT Credit on the basis of invoices allegedly issued by non-existent and bogus manufacturing units required interference and remand for fresh adjudication.

Analysis: The appeal concerned irregular availment of MODVAT Credit by a registered dealer on invoices stated to be fake and fictitious. The matter was treated as covered by the Tribunal's earlier decision in a similarly placed case, where identical appeals had been remanded to the original adjudicating authority for de novo consideration in the light of those observations.

Conclusion: The impugned order was set aside and the matter was remanded to the original adjudicating authority for fresh decision.

Final Conclusion: The assessee obtained remand relief and the dispute was sent back for reconsideration on merits.

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