Referable questions of law in excise proceedings on statements, cross-examination, and clandestine removal were sent to the High Court.

Questions arising from the Tribunal's treatment of statements recorded under Section 14 of the Central Excise Act, the denial of cross-examination of transporters and other witnesses, and findings on misdeclaration and clandestine removal were treated as referable questions of law under Section 35H(1). The Court held that these issues went beyond pure questions of fact because they concerned the evidentiary value of the statements and the legal effect of the cross-examination objection. The Revenue's questions were therefore held referable to the High Court, and the Tribunal was directed to state the case and transmit the record.

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Issues: Whether the questions framed by the Revenue gave rise to referable questions of law under Section 35H(1) of the Central Excise Act, 1944, including the admissibility of statements recorded under Section 14, the effect of denial of cross-examination, and findings relating to misdeclaration and clandestine removal.

Analysis: The dispute turned on whether the Tribunal's findings involved substantial questions of law rather than merely questions of fact. The Court found that the Tribunal had dealt with the evidentiary value of statements recorded under Section 14, the contention regarding non-examination and cross-examination of transporters and other witnesses, and the conclusions on misdeclaration and clandestine removal. These were held to be fit subjects for reference, as they raised legal questions arising from the Tribunal's decision.

Conclusion: The questions framed by the Revenue were held to be referable to the High Court, and the Tribunal was directed to state the case and transmit the record.

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