Modvat credit on packing materials turns on factual inclusion in assessable value, leaving no referable question of law.

Modvat credit on glass bottles and plastic crates was considered in relation to whether their cost formed part of the assessable value of aerated waters under Rule 57A of the Central Excise Rules, 1944. The Tribunal, relying on an earlier decision between the same parties and a Chartered Accountant's certificate, found as a fact that the packing material cost had been included on a pro rata basis in the assessable value of the final product. On that factual foundation, the High Court stated that it would not re-appreciate evidence or interfere with concurrent findings in reference proceedings. No referable question of law arose, so the Revenue's reference petition was declined.

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Issues: Whether any referable question of law arose from the Tribunal's order allowing Modvat credit on glass bottles and plastic crates included in the assessable value of aerated waters.

Analysis: The Tribunal had relied on an earlier decision between the same parties and recorded a factual finding, supported by a Chartered Accountant's certificate, that the cost of glass bottles and plastic crates was included on a pro rata basis in the assessable value of the final product. That factual finding satisfied the requirement of Rule 57A of the Central Excise Rules, 1944. In reference jurisdiction, the High Court would not re-appreciate evidence or disturb concurrent factual findings merely because another view was possible.

Conclusion: No question of law arose for reference, and the Revenue's petition was declined.

Ratio Decidendi: Where the Tribunal's entitlement to Modvat credit rests on a factual finding that the packing material cost formed part of the assessable value, no referable question of law arises and the High Court will not re-examine the evidence in reference proceedings.

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