Modvat credit remains admissible on a departmental subsidiary gate pass where duty-paid inputs are undisputed.

Modvat credit could not be denied merely because it was taken on a subsidiary gate pass issued by the jurisdictional Superintendent in April 1994, where the document was issued by the departmental authority itself and duty payment on the inputs was undisputed. The relevant question was whether the document remained acceptable after 1 April 1994, and the analysis treated the absence of that document from the prescribed category as insufficient to defeat credit in these circumstances. The Revenue's objection was rejected and credit was held admissible.

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Issues: Whether Modvat credit could be denied on the basis of a subsidiary gate pass issued by the jurisdictional Superintendent in April 1994.

Analysis: The only dispute was whether the document used for taking credit remained acceptable after 1 April 1994. The credit had been taken on a document issued by the departmental authority itself, and there was no dispute that duty had been paid on the inputs. In these circumstances, the absence of the document from the prescribed category did not justify denial of credit.

Conclusion: Modvat credit could not be denied, and the Revenue's appeal was rejected.

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