Modvat credit based on accepted invoices and factual receipt of goods raised no substantial question of law.

Modvat credit could not be disturbed where the assessee's receipt of goods under invoices containing duty-paying particulars was accepted on the factual record. The dispute was confined to appreciation of evidence and concluded findings of fact, which favoured the assessee. On that basis, the High Court held that no substantial question of law arose from the Revenue's challenge, so interference in reference jurisdiction was unwarranted and the matter stood in favour of the assessee.

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Issues: Whether, on the facts found by the authorities, the Revenue's challenge to the grant of Modvat credit raised any substantial question of law warranting interference.

Analysis: The receipt of goods under invoices containing duty-paying particulars was not disputed, and the factual findings accepted that the goods had been received. The dispute turned on appreciation of evidence and concluded factual determinations in favour of the assessee. In such a situation, no substantial question of law arose for consideration in the reference appeal.

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

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