Modvat credit and Rule 57G declaration compliance raised a referable question of law for consideration.

Non-compliance with the declaration requirement under Rule 57G, in the context of Modvat credit, was treated as raising a referable question of law. The Tribunal had accepted that credit could still be claimed without the prescribed declaration, and the High Court held that this legal effect warranted consideration on reference. The matter was therefore directed to be referred along with the statement of case and records for adjudication on the stated legal question.

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Issues: Whether the Tribunal's view that Modvat credit was admissible even without the declaration under Rule 57G of the Central Excise Rules, 1944 gave rise to a question of law fit for reference.

Analysis: The Tribunal had held that a manufacturer could claim Modvat credit despite not filing the declaration contemplated by Rule 57G. The Court found that this contention raised a question of law requiring consideration and, in the circumstances, directed that the question be referred together with the statement of case and records.

Conclusion: The question of law was directed to be referred to the High Court.

Final Conclusion: The proceeding was concluded by an order requiring reference of the stated legal question for adjudication on the record sent by the Tribunal.

Ratio Decidendi: Where the Tribunal's decision turns on the legal effect of non-compliance with a mandatory declaration requirement, the matter raises a referable question of law.

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