Cenvat credit computation dispute on textile inputs in process was remanded after inadequate factual basis for excess credit allegation.

Cenvat credit on textile inputs in process was examined on a factual dispute over whether the assessee had included processing charges, colours and chemicals in the credit computation or had limited it to grey fabrics under process. Credit on processing charges was not reopened because that issue had already been decided against the assessee in an earlier Tribunal ruling. The remaining demand lacked a clear factual foundation in the record, so the basis for alleging excess credit was found inadequate. The impugned order was set aside and the matter was remanded to the Original Adjudicating Authority for de novo adjudication after considering the assessee's plea.

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Issues: Whether the impugned order deserved to be set aside and the matter remanded for fresh adjudication on the factual dispute regarding computation of Cenvat credit on inputs in process, including alleged inclusion of processing charges, colours and chemicals.

Analysis: The dispute arose from the computation of Cenvat credit under the scheme introduced for textile items. The admissibility of credit on processing charges was treated as already decided against the appellant in an earlier Tribunal decision, so that aspect was not reopened. The surviving question was factual: whether, while calculating credit on inputs in process, the appellant had actually added the value of processing charges, colours and chemicals or had confined the computation to the value of grey fabrics under process. The record before the lower authorities did not clearly show the basis on which the excess credit was alleged to have been taken, and the factual foundation for the demand was found inadequate.

Conclusion: The impugned order was set aside and the matter was remanded to the Original Adjudicating Authority for de novo adjudication after considering the appellant's plea.

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