Set-off refund timing dispute held fit for legal reference where statutory time limits and formal request requirements were contested

A reference was sought on whether the Tribunal's order gave rise to a question of law and whether a formal request for set-off had to be made within the prescribed time for refund under Rule 11 or section 11B. The High Court treated that legal controversy as arising from the Tribunal's order and considered it fit for reference because the dispute turned on the statutory time limit and the requirement of a formal request. It directed the Tribunal to state the case and refer the question for decision.

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Issues: Whether a question of law arose from the Tribunal's order so as to warrant a direction for reference, and whether the Tribunal's view that a formal request for set-off had to be made within the prescribed time for refund could be referred for decision.

Analysis: The application was made under section 35G of the Central Excises and Salt Act, 1944 after the Tribunal had rejected an earlier request under section 35C(7). On hearing both sides, the Court found that the proposed question did arise out of the Tribunal's order. Since the controversy concerned the legal requirement of making a formal request for set-off within the time prescribed under Rule 11 or section 11B, it was fit for reference to the High Court.

Conclusion: The Court held that the question of law arose and directed the Tribunal to state the case and refer the question for decision.

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