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of <h1>Tribunal upholds Modvat credit on pre-1994 machinery, dismissing Revenue's appeals</h1> The Tribunal affirmed the Commissioner's decision to grant Modvat credit on capital goods used in machinery installed before 1-3-1994, based on previous ... Appellate Tribunal Issues:32 appeals filed by Revenue regarding Modvat credit on capital goods used in machinery installed prior to 1-3-1994.Analysis:1. The appeals arose from Orders-in-Appeal rejecting Revenue applications for Modvat credit on capital goods used in machinery installed before 1-3-1994. The Assistant Commissioner granted Modvat credit based on Tribunal's ruling in a specific case. The Commissioner (Appeals) upheld these orders, citing Tribunal judgments and rejecting Revenue's Reference applications. Respondents supported the Commissioner's decision.2. Revenue argued that the Commissioner's decision was arbitrary and not based on facts or law. They claimed the Commissioner should have assessed the merits of the case instead of relying on Tribunal judgments.3. Shri D. Shankar, representing the Revenue, sought a stay on the Commissioner's orders. He clarified his role and submission, stating his superior directed him to defend the department in the appeals.4. The Tribunal examined whether Modvat credit was admissible on capital goods used in machinery installed before 1-3-1994. Both authorities found the issue had been settled by previous Tribunal judgments, which had binding force across all Commissionerates. The Commissioner's decision was based on legal grounds, and the Revenue's appeals were rejected.5. The Commissioner's findings highlighted that the Tribunal had consistently allowed Modvat credit on components, spare parts, and accessories used in machinery installed before 1-3-1994. This decision was based on the definition of capital goods under Rule 57Q and the payment of duty after 1-3-1994. The Commissioner rejected the Revenue's appeals as lacking merit.6. The Tribunal affirmed the correctness of the Commissioner's decision in law and rejected the Revenue's appeals, concluding that no stay was necessary. The orders of both authorities were confirmed, and the Revenue's appeals were dismissed.
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