Deemed Modvat credit must be considered after exemption denial where the dispute remains pending readjudication.

After denial of exemption under Notification No. 202/88, the Tribunal held that the appellant's claim for deemed Modvat credit had to be considered if otherwise admissible. It noted that the matter had already been remanded for re-quantification and that the Assistant Collector had not yet readjudicated the dispute, so the earlier Tribunal principle governed the issue. The Assistant Collector was therefore directed to consider the plea for deemed Modvat credit.

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Issues: Whether the appellant was entitled to have the plea for deemed Modvat credit considered after denial of exemption under Notification No. 202/88.

Analysis: The appeals arose from a common order and the benefit of the exemption notification had been denied following earlier Tribunal authority. The matter had also been remanded for re-quantification, and the Assistant Collector had not yet readjudicated the dispute. In that setting, the Tribunal held that the principle of the earlier decision should apply and that the appellant's request for deemed Modvat credit required consideration, if otherwise admissible.

Conclusion: The appellant's plea for deemed Modvat credit was directed to be considered by the Assistant Collector.

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