Classification for Modvat credit under Rule 57Q required fresh factual examination and remand for reconsideration.

Classification for Modvat credit under Rule 57Q is a question of law and may be raised at any stage, but it must still be examined on the relevant facts. Where the authorities below had not properly considered the goods against the claimed classification, the matter required fresh scrutiny. The issue was remitted to the Assistant Commissioner for reconsideration after giving the assessee an opportunity of hearing, with classification and eligibility to Modvat credit to be decided afresh.

---

---

Issues: Whether the classification of the goods for the purpose of Modvat credit under Rule 57Q required fresh examination and consequential remand.

Analysis: The classification plea was not examined by the authorities below on the relevant facts. Classification is a question of law and may be raised at any stage. Since the record did not contain a proper examination of the goods with reference to the claimed classification, the matter required reconsideration by the original authority after granting an opportunity of hearing.

Conclusion: The issue was remitted to the Assistant Commissioner for fresh decision on classification and eligibility to Modvat credit.

---