Factual classification dispute defeats cenvat credit claim where inconsistent product headings were not satisfactorily explained.

Classification of goods under heading 7308.90, rather than 8474.90, was treated as an essentially factual dispute in relation to denial of cenvat credit under Rule 57-Q of the Central Excise Rules, 1944. The court noted that the same goods had been supplied by another supplier under heading 7308 and that the appellant failed to satisfactorily explain the inconsistency in its claim for credit. As the demand had already been confined to the limitation period and the penalty had been set aside earlier, no substantial question of law arose and the challenge to denial of credit failed.

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Issues: Whether the classification of the goods as falling under heading 7308.90 instead of heading 8474.90 gave rise to any substantial question of law and affected the denial of cenvat credit under Rule 57-Q of the Central Excise Rules, 1944.

Analysis: The classification dispute was treated as essentially factual. The same goods had been supplied by another supplier who had classified them under heading 7308, and the appellant had not satisfactorily explained the inconsistency in its claim for credit. The impugned order had already confined the demand to the period within limitation and the penalty had been set aside earlier.

Conclusion: No substantial question of law arose for consideration, and the challenge to denial of credit failed.

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