Modvat/Cenvat credit on fire-destroyed inputs upheld where issuance and subsequent destruction were admitted, leaving no substantial question of law.

Modvat/Cenvat credit was held admissible on inputs issued to the assessee and subsequently destroyed in a fire accident, relying on a Larger Bench view and a Supreme Court order taking the same position where issuance and destruction were admitted. The Court found the issue to be settled and held that no substantial question of law arose for admission of the Revenue's appeal.

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Issues: Whether the assessee was entitled to Modvat/Cenvat credit on goods destroyed in a fire accident.

Analysis: The Tribunal had relied on a Larger Bench decision holding that such credit was admissible where the inputs had been issued and were later destroyed in fire. The Court also noted that a short order of the Supreme Court had taken the same view where the department had admitted issuance of the inputs and their subsequent destruction in fire. In view of the settled position, the Court found that no substantive question of law arose for admission of the appeal.

Conclusion: The issue was answered in favour of the assessee and against the Revenue.

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