Strict construction of Modvat document rules led to a referable question on endorsed gate passes and credit eligibility.

Notification No. 16/94-C.E. (N.T.) was treated as restricting Modvat credit documentation to documents issued before 1-4-1994, and Rule 57G was construed strictly. On that basis, endorsed gate passes issued before 1-4-1994 but endorsed after that date were considered to raise a referable question of law on eligibility for credit. The Tribunal followed the earlier decision in Moosa Haji Patrawala and directed that the legal question be referred to the High Court, allowing the reference application.

---

---

Issues: Whether a question of law arose for reference on the issue whether gate passes issued before 1-4-1994 but endorsed after that date were eligible documents for Modvat credit under Notification No. 16/94-C.E. (N.T.).

Analysis: The Notification prescribed only those documents that had been issued before 1-4-1994, and the scheme under Rule 57G was subject to strict construction. On that basis, the Tribunal held that endorsed gate passes issued before 1-4-1994 but endorsed after that date raised a referable question of law, following the earlier decision in Moosa Haji Patrawala.

Conclusion: The reference application was allowed and the question of law was directed to be referred to the High Court.

---