Modvat credit on twice-endorsed challan: Board circulars cannot bind quasi-judicial decisions where no double benefit is shown.

Modvat credit on a challan endorsed twice was examined in light of Board instructions aimed only at preventing double benefit. As no actual double benefit had been shown on the first endorsement, the circular could not control the quasi-judicial determination under the Act. The court also noted that such Board circulars are not binding on quasi-judicial authorities. On these facts, the proposed reference did not raise a referable question of law, and the request for reference was declined.

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Issues: Whether Modvat credit was allowable on a challan endorsed twice and whether the question sought to be referred gave rise to a question of law.

Analysis: The instructions of the Central Board of Excise and Customs were intended only to prevent double benefit. It was not shown that any benefit had actually been taken on the first endorsement. The circulars issued by the Board were also not binding on quasi-judicial authorities under the Act.

Conclusion: No referable question of law arose on the facts, and the request to require a reference was declined.

Ratio Decidendi: A Board circular meant to prevent double benefit does not control a quasi-judicial determination where no actual double benefit is shown, and in such circumstances no question of law arises for reference.

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