Referable question of law test bars reference where dispute turns on factual appreciation of depot-issued invoices and Modvat credit.

A reference under Section 35H(1) of the Central Excise Act was maintainable only if the Tribunal's order disclosed a referable question of law, not a mere question of fact. The Tribunal had accepted depot-issued invoices as valid documents and, on the factual record, held that Modvat credit was correctly taken. The High Court found that the Revenue's proposed questions challenged only the Tribunal's appreciation of evidence and the genuineness of the invoices, which were factual matters. No referable question of law arose, so the reference application was not maintainable.

---

---

Issues: Whether the reference application under Section 35H(1) of the Central Excise Act, 1944 disclosed any referable question of law arising from the Tribunal's order concerning entitlement to Modvat credit on depot-issued invoices.

Analysis: The Tribunal had found, on the basis of the documents and the factual record, that the invoices issued by the manufacturer's depot were valid documents and that the Modvat credit had been correctly taken. The High Court held that the proposed questions raised by the Revenue did not involve a legal issue arising from the order, but turned essentially on the Tribunal's factual appreciation and genuineness of the documents relied upon for credit. A reference under the provision could be made only where a question of law, and not a mere question of fact, arose from the order.

Conclusion: No referable question of law arose, and the reference application was not maintainable.

---