Modvat credit dispute and pending excise adjudication ended with a time-bound direction for decision within one month

Pending excise adjudication concerning the admissibility and possible reversal of Modvat credit was not decided on merits; the Court instead focused on the prolonged pendency after the show cause notice. It directed the Central Excise authority to conclude the adjudication within one month from service of a certified copy of the order, recording the petitioner's undertaking not to delay the proceedings. The writ petition was thus disposed of with a time-bound direction to decide the matter.

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Issues: Whether the writ petition should result in a direction restraining reversal of Modvat credit, and whether the pending excise adjudication should be directed to be concluded within a fixed time.

Analysis: The dispute had remained pending before the Collector, Central Excise for a considerable period after issuance of the show cause notice. Instead of deciding the admissibility of Modvat credit on merits, the Court directed the authority to decide the pending matter within one month from the date of service of a certified copy of the order, while noting the petitioner's undertaking not to delay the proceedings.

Outcome: The writ petition was disposed of with a direction to the Collector, Central Excise, Kanpur to decide the pending adjudication within the stipulated time.

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