Modvat credit on inputs for exported moped chains allowed; pending High Court reference alone could not upset appellate relief.

Modvat credit on inputs used in manufacturing exported moped chains was treated as admissible because the issue had already been covered by earlier Tribunal rulings on similar facts. The pendency of a departmental reference before the High Court did not, by itself, justify disturbing the lower appellate authority's order in the absence of any stay. The Revenue's challenge therefore failed and the appellate relief remained undisturbed.

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Issues: Whether Modvat credit taken on inputs used in the manufacture of exported moped chains could be denied, and whether the pendency of a departmental reference before the High Court justified interference with the appellate order.

Analysis: The issue was covered by earlier Tribunal decisions which had already held the credit admissible on similar facts. Mere pendency of a reference application, without any stay of the order under challenge, did not furnish a ground to disturb the relief granted by the lower appellate authority.

Conclusion: The credit was held admissible and the Revenue's appeals were rejected.

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