Modvat credit on high speed diesel oil under Rule 57B raised a question of law for reference and decision.

The Madras High Court considered whether Modvat credit under Rule 57B could be extended to high speed diesel oil when it was not specified as an input under any notification issued under Rule 57A. It treated the Tribunal's order as raising a question of law and directed the Tribunal to refer the stated question for decision along with the statement of the case and relevant materials. A connected reference on a similar question was also noted as pending.

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Issues: Whether the Tribunal was correct in extending Modvat credit under Rule 57B on high speed diesel oil which was not specified as an input under any notification issued under Rule 57A.

Analysis: The Court found that the order of the Tribunal gave rise to a question of law requiring consideration. On that basis, it directed the Tribunal to refer the stated question for decision, together with the relevant statement of the case and materials. The order also noted a similar question pending in another connected reference.

Conclusion: The question was directed to be referred for answer.

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