Proforma credit on lignite used in ferro alloys was held to raise a referable question of law for High Court determination.

The Tribunal treated lignite (LECO) as a raw material used in the manufacture of ferro alloys and allowed proforma credit with consequential relief. On reference, the Court held that the amended question on entitlement to such credit raised a question of law fit for reference under the applicable provision. The issue was therefore forwarded to the High Court for determination, confirming that a legal question can arise where the character of an input used in manufacture is disputed.

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Issues: Whether a question of law arose for reference to the High Court on the entitlement of lignite (LECO) to proforma credit as a material used in the manufacture of ferro alloys.

Analysis: The order records that the Tribunal had treated lignite as a raw material in the manufacture of ferro alloys and had allowed the appeal with consequential relief. On the reference application, the Court held that the amended question framed on that basis did give rise to a question of law fit for reference under the relevant provision.

Conclusion: The question was referred to the High Court.

Final Conclusion: The reference application succeeded and the legal issue was forwarded for determination by the High Court.

Ratio Decidendi: Where the Tribunal's order gives rise to a legal question on the character of an input used in manufacture, a reference may be made if the issue is one of law.

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