Deemed Modvat credit on scrap turned on factual appreciation, with no independent question of law arising.

In a deemed Modvat credit dispute on iron and steel scrap, the document states that the assessee asserted the goods were duty paid and that the department had to disprove that claim with evidence. The matter was treated as one of factual appreciation, focused on whether the goods had in fact borne duty, rather than on any independent legal issue. On that basis, the text concludes that no question of law arose from the Tribunal's order and the reference application was not maintainable.

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Issues: Whether, in the case of deemed Modvat credit on iron and steel scrap, the burden lay on the assessee to establish that the goods were duty paid and whether the reference disclosed any question of law.

Analysis: The assessee had taken the stand that the goods were duty paid, and the department was required to disprove that stand by evidence. On the facts found, the dispute turned on appreciation of evidence and whether the goods had actually borne duty. The determination did not involve any independent legal question beyond factual evaluation.

Conclusion: No question of law arose from the Tribunal's order, and the reference application was not maintainable on that basis.

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