Bona fide Modvat credit mistake and absence of mala fide intention meant no substantial question of law arose.

Wrongful availment of Modvat credit was treated as a bona fide mistake where the assessee had taken credit of basic customs duty, the error was detected in audit, and the credit was reversed. The Tribunal found no material showing deliberate wrongdoing or mala fide intention, and noted that sufficient credit balance existed during the relevant period. The High Court treated these conclusions as findings of fact supported by the record, and no material was produced to displace them. On that basis, the Tribunal's view was not shown to be legally erroneous, and no substantial question of law arose for interference.

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Issues: Whether the Tribunal was justified in holding that the wrongful availment of Modvat credit was a bona fide mistake without mala fide intention, and whether any substantial question of law arose for interference.

Analysis: The Tribunal found that the assessee had mistakenly taken credit of basic customs duty, detected the error in audit, and reversed the credit. It further found no allegation or evidence of deliberate wrongdoing or mala fide intention, and noted that the assessee had sufficient credit balance during the relevant period. The High Court held that these were findings of fact based on the record and that no material had been produced to dislodge them.

Conclusion: The Tribunal's conclusion that the case involved a bona fide mistake subsequently rectified was not shown to be legally erroneous, and no substantial question of law arose.

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