Reasonable time for Modvat credit under Rule 57B was treated as a referable question of law.

Interpretation of Rule 57B of the Central Excise Rules, 1944 and the time for taking Modvat credit were treated as questions of law. The text notes that, where no express time limit is prescribed, credit taken after receipt of inputs may be allowed within a reasonable period, and that consistency in decision-making supported treating the issue as referable. On that basis, the department's formulated question was referred to the High Court.

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Issues: Whether the question of law relating to interpretation of Rule 57B of the Central Excise Rules, 1944 and the taking of Modvat credit within a reasonable period should be referred to the High Court.

Analysis: The matter arose from an earlier appellate order where credit taken after receipt of inputs was upheld on the basis that, where no express time limit is prescribed, a reasonable time may be allowed. The same issue had already been taken as giving rise to a question of law, and consistency in decision-making was considered necessary. The earlier view was also supported by the general principle that, in the absence of a specific statutory time limit, the concept of reasonable time governs the exercise of the entitlement.

Conclusion: The question formulated by the department was referred to the High Court.

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