Modvat credit on factory inputs remained admissible where prior Tribunal rulings stood unreversed and no stay had been granted.

Modvat credit was considered admissible on refractory bricks, thinner, foundry chemicals, stopper head, P.P. resin, ferro chrome, grinding wheels, hot tops and similar factory inputs because the lower appellate authority had already relied on Tribunal decisions and a Larger Bench ruling supporting eligibility. The mere pendency of a special leave petition and admission of a civil appeal did not invalidate those rulings in the absence of any stay of operation. On that basis, the credit remained allowable and the Revenue's challenge failed.

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Issues: Whether Modvat credit was admissible on refractory bricks, thinner, foundry chemicals, stopper head, P.P. resin, ferro chrome, grinding wheels, hot tops and similar items used in the factory.

Analysis: The items had already been held eligible for credit by the lower appellate authority on the basis of Tribunal decisions and a Larger Bench ruling. The mere pendency of a special leave petition and admission of a civil appeal did not displace those decisions in the absence of any stay of their operation.

Conclusion: The credit was held admissible and the Revenue's challenge failed.

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