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Judgment
Om Prakash, J.—This petition raises the question whether Modvat credit already allowed on the duty paid input used in the manufacture of acid slurry, can be recovered on the ground that it was wrongly paid to the extent of spent acid, which was not actually consumed in the manufacture of final product.
Similar question came up for our consideration in Writ Petition No. 1580 of 1991, in which we by order of date held that duty paid input having been physically involved in the manufacture of final product, Modvat credit already allowed thereon, cannot be said to have been wrongly allowed and hence can not be recovered by the impugned notice.
Following the said decision, we uphold the contention of the petitioner.
The petition, therefore, succeeds and is allowed and the impugned notice dated 4-11-1991 (Annexure ''6'' to the petition) is quashed.