Modvat credit on refractory bricks and capital goods warranted reference, with the Tribunal directed to state the case.

Questions on the admissibility of Modvat credit for refractory bricks and their treatment as capital goods were found to warrant consideration by the High Court. After examining the Tribunal's order and hearing counsel, the Court directed the Tribunal to state the case, refer the proposed questions for decision, and transmit the statement of the case with the necessary materials. The operative effect was that the reference was ordered on the proposed questions, which was favourable to the Revenue.

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Issues: Whether the proposed questions on admissibility of Modvat credit in respect of refractory bricks and their treatment as capital goods required reference to the Court.

Analysis: The order records that the proposed questions raised a matter requiring consideration and, on perusal of the Tribunal's order and hearing counsel, the Court found that the questions warranted a reference. The Tribunal was accordingly directed to refer the stated questions and transmit the statement of the case with the necessary materials.

Conclusion: The reference was directed to be made on the proposed questions, which is in favour of the Revenue.

Final Conclusion: The matter was disposed of by directing the Tribunal to state the case and refer the questions for decision by the Court.

Ratio Decidendi: Where the Court finds that a proposed question of law requires its consideration, it may direct the Tribunal to make a reference and forward the statement of case and materials.

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