Modvat credit upheld on receipt and use of inputs, with documentary evidence and concurrent factual findings defeating appellate interference.

Modvat credit was sustained where the factual authorities found that inputs were received and used in manufacture, and the Department failed to dislodge those concurrent findings or show use of alternative raw material. Documentary evidence, including assessed RT-12 returns and payment by cheque or demand draft, supported the conclusion that the credit claim was genuine. The dispute was treated as purely factual, so no substantial question of law arose for appellate interference, and the assessee retained the Modvat credit.

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Issues: Whether the assessee was rightly allowed Modvat credit on the basis of the invoices and evidence showing receipt and use of inputs, and whether any substantial question of law arose from the Tribunal's affirmation of the factual findings.

Analysis: The factual authorities found that the inputs were received by the manufacturer and used in the manufacture of final products cleared on payment of duty. The Department did not dislodge those concurrent factual findings, nor establish that any alternative raw material was used. The court also noted that the Tribunal relied on assessed RT-12 returns and documentary evidence, including payment by cheque or demand draft, and therefore treated the dispute as turning purely on facts rather than on any legal issue warranting interference under the appellate jurisdiction.

Conclusion: The assessee was entitled to retain the Modvat credit and no substantial question of law arose for consideration.

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