MODVAT credit remand upheld where verification was required and existing Tribunal precedent had not been shown overturned.

A remand directing grant of MODVAT credit only after due verification of exports was treated as an open remand and upheld. The Commissioner (Appeals) had relied on an existing Larger Bench view of the Tribunal, and there was no showing that the view had been overturned by a superior forum. The Tribunal also noted that later departmental proceedings were not before it and could not be examined at that stage. The Revenue's challenge therefore failed, and the reconsideration of credit on verification was sustained.

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Issues: Whether the Commissioner (Appeals) was justified in remanding the matter for grant of MODVAT credit to the extent of exports after due verification.

Analysis: The remand direction was treated as an open remand because credit was to be granted only after due verification. The Commissioner (Appeals) had followed an earlier Larger Bench view of the Tribunal, and there was nothing to show that that view had been set aside by any superior forum. Proceedings subsequently initiated by the department were not before the Tribunal and could not be examined at that stage.

Conclusion: The remand order was upheld and the Revenue's challenge failed.

Final Conclusion: The appellate order allowing reconsideration of credit on verification was sustained, and the Revenue appeal was dismissed.

Ratio Decidendi: An open remand directing grant of credit after due verification, when based on an operative Larger Bench view not shown to have been overturned, does not suffer from infirmity.

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