1. This is a Revenue appeal to challenge the grant of modvat credit on HSD oil. The Larger Bench of the tribunal noted that the judgement of the Tribunals were not accepted by the Govt. of India and through Parliament Act i.e. Finance Act, the effect of the Tribunal judgement holding that the modvat credit is eligible in respect of HSD oil was negated and given retrospective effect.The effect as on today is in view of the Finance Act, 2000 the modvat credit on HSD oil is not eligible. In view of this position, the Larger Bench in the case of CHEMO PULP TISSUES & OTHERS Vs CCE Meerut & Ors. 2000 (39) RLT 988 -CEGAT (LB). This judgement has been followed by this Bench in a bunch of appeals at the time of passing final order No.945 to 998/2000 along with stay order No.624 to 638/2000. By this order, this Bench noting the Larger Bench judgement and Clause (1) of Section 112 of the Finance Act, 2000 allowed the revenue appeals.
2. Ld. DR Shri S.Kannan seeks reversal of the order and of allowing the appeal.
3. Ld. Counsel Shri M.Venkataraman submits that the now the issue is settled by the Finance Act. 2000 which has been followed by the Larger Bench of this Bench in the noted case above.
4. On careful consideration & on perusal of the records, I notice that the Finance Act, 2000 has retrospective effect holding that modvat credit on HSD oil cannot be granted and the Revenue appeals have been accepted by the Larger Bench and has since been applied in all the appeals coming before this Bench. In that view of the matter, the impugned order is set aside and the revenue appeal allowed. Ordered accordingly.