Modvat credit on accepted Chartered Accountant certificate upheld where Revenue failed to disprove duty-paid inputs.

Modvat credit quantified on the basis of an accepted Chartered Accountant's certificate was sustained because the Revenue produced no contrary evidence to show that the inputs were not duty paid. The tribunal treated the earlier acceptance of the certificate and the supporting record as sufficient for allowing credit, and held that a generalized challenge could not displace that evidence. The Revenue's objection was therefore rejected and the credit in favour of the assessee was upheld.

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Issues: Whether Modvat credit could be sustained on the basis of the Chartered Accountant's certificate and the available record showing duty-paid inputs, in the absence of contrary evidence from the Revenue.

Analysis: The dispute was confined to the admissibility of Modvat credit granted during quantification after remand. The credit had been worked out with reference to a Chartered Accountant's certificate that had already been accepted in earlier proceedings. The Revenue did not challenge the certificate in the present proceedings and did not produce contrary material to show that the raw materials or inputs were not duty paid. In these circumstances, and in light of the earlier acceptance of the certificate and the supporting precedent relied upon by the assessee, the allowance of credit was found to be justified.

Conclusion: The allowance of Modvat credit was upheld and the Revenue's objection was rejected.

Final Conclusion: The Revenue's appeal failed on merits, and the order granting Modvat credit to the assessee was sustained.

Ratio Decidendi: Where Modvat credit is quantified on the basis of an accepted Chartered Accountant's certificate and no contrary evidence is produced to disprove duty-paid nature of the inputs, the credit cannot be denied merely on a generalized challenge.

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