Modvat credit on endorsed invoices required reference where the document was not prescribed under the excise rules.

The High Court held that the proposed questions did arise for consideration and that the Tribunal was required to refer the legal issue concerning extension of Modvat credit on inputs received under an endorsed invoice, where such endorsement was not a prescribed document under Rule 57G(3) of the Central Excise Rules, 1944. It treated the matter as fit for reference and directed the Tribunal to forward a statement of case with the relevant materials for decision on the question.

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Issues: Whether the questions proposed by the Tribunal arose for consideration and whether the Tribunal was required to refer the question relating to extension of Modvat credit on inputs received under cover of an endorsed invoice when such endorsement was not a prescribed document under Rule 57G(3) of the Central Excise Rules, 1944.

Analysis: The Court, on hearing the counsel and examining the relevant rules, found that the proposed questions did arise and required consideration. It therefore treated the matter as fit for reference and directed the Tribunal to forward a statement of case together with the relevant materials for answering the question. The issue turned on the Tribunal's obligation to refer the legal question concerning the admissibility of Modvat credit where the document relied upon was not one prescribed by the governing rule.

Conclusion: The reference was directed and the Tribunal was required to send the question and materials for decision.

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