Modvat credit on packaging material was upheld as settled law, leaving no referable question for the High Court.

Modvat credit on Duplex Board used to make cartons for packing torches was treated as admissible where the material was used in relation to manufacture through packaging, including cartons prepared by job workers. The Tribunal relied on settled precedent on packaging materials and the widened meaning of "in relation to manufacture" to hold that the board could qualify as an input, and that duty-free cartons or indirect processing did not alter the position. Because the issue was already governed by binding authority and was not debatable, no referable question of law arose and the request for reference was not maintainable.

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Issues: (i) Whether a reference to the High Court was warranted on the question whether Modvat credit was admissible on Duplex Board used for making cartons for packing torches.

Analysis: The application was examined under the reference jurisdiction and the decisive consideration was whether the question raised was debatable or already concluded by binding authority. The Tribunal's earlier order had proceeded on the footing that Duplex Board was used in the course of manufacture of the packed final product through cartons prepared by job workers, and that such input fell within the expression "inputs" used in or in relation to manufacture. The reasoning was supported by earlier decisions on packaging materials, on the widened scope of "in relation to", and on the principle that a question already settled by authoritative precedent does not require reference to the High Court. The fact that cartons were duty-free and that the board was not directly converted by the assessee did not alter the legal position.

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

Final Conclusion: The order under challenge stood on settled legal principles governing Modvat credit and reference jurisdiction, so the Collector's request for reference failed.

Ratio Decidendi: A reference need not be made where the proposed question is self-evident or already concluded by binding precedent, and material used to produce packaging through job work may qualify as an input used in relation to manufacture for Modvat purposes.

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