Referable question of law on clandestine manufacture survives where inference rests on stock statements and civil pleadings.

The Tribunal treated the challenge to its inference of clandestine manufacture and removal as raising a referable question of law where that inference was drawn from bank stock verification material and civil court pleadings. It held that the issue was not to be rejected merely because it involved factual appreciation, since the real question was whether such material could legally support the conclusion reached. The reference was therefore maintained, the proposed question was reformulated, and the core issue was sent to the High Court for opinion while the abandoned question was not pursued.

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Issues: Whether the reference application disclosed a question of law requiring reference to the High Court on the basis of clandestine manufacture being inferred from bank stock verification and pleadings in civil proceedings.

Analysis: The application challenged the Tribunal's conclusion that the goods were clandestinely manufactured and removed on the strength of material relating to bank stock statements and civil court pleadings. The question whether such material could justify the inference drawn by the Tribunal was treated as a legal issue arising out of the order, and not as a matter to be rejected merely because factual appreciation was involved. The Tribunal therefore found that the matter warranted a reference, and it reformulated the proposed question for consideration by the High Court.

Conclusion: The reference question was held to arise out of the Tribunal's order and was directed to be referred to the High Court in reformulated form.

Final Conclusion: The reference application succeeded to the extent that the core legal issue was referred for opinion, while the abandoned question was not pursued.

Ratio Decidendi: Where the Tribunal's decision turns on whether the inference of clandestine manufacture from the available material raises a legal question, the issue is referable to the High Court under the reference provision.

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