Modvat credit on endorsed gate passes upheld where duty-paid character and bona fides could be verified.

Rule 57G(2) of the Central Excise Rules, 1944 was applied to treat endorsed gate passes as valid duty-paying documents for Modvat credit, provided the duty-paid character and bona fides of the documents could be verified. The Tribunal followed an earlier identical reference decision and held that further transfer by endorsement did not by itself destroy the documents' validity. The proposed questions were treated as academic, and the contention that relief had been granted without authority was rejected because the relief remained within the statute and rules. No referable question of law was found, so the Revenue's reference application was rejected.

---

---

Issues: Whether the Revenue's reference application raised any referable question of law arising from the Tribunal's earlier order allowing Modvat credit on endorsed gate passes.

Analysis: The order followed an earlier reference order on identical questions and agreed with that view. The Tribunal held that Rule 57G(2) of the Central Excise Rules, 1944 permitted credit on inputs received under prescribed duty-paying documents, and that gate passes bearing endorsements did not cease to be duty-paying documents merely because of further transfer if their duty-paid character and bona fides could be verified. The questions framed were treated as academic and the alleged absence of authority to grant relief was found not to arise, because the relief granted was within the statute and rules.

Conclusion: No question of law requiring reference arose and the reference application was rejected, against the Revenue.

---