Modvat input treatment for separator film in manufacture upheld; no independent question of law arose for reference.

BOPP film/tape used as a separator in the manufacture of aprons and cots was treated as an input for Modvat purposes under Rule 57A of the Central Excise Rules, 1944, because the Tribunal had already determined its nature as a qualifying manufacturing input. On that basis, the benefit of Modvat was upheld and the proposed reference to the High Court was rejected, as no independent question of law arose. The mere pendency of an SLP against a different High Court decision did not convert the issue into a referable question of law in the present matter.

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Issues: Whether BOPP film/tape used as a separator in the manufacture of aprons and cots is an input for the purpose of Rule 57A of the Central Excise Rules, 1944 and whether any referable question of law arose.

Analysis: The Tribunal noted that it had already taken the view, on the nature of the BOPP film/tape used as a separator in the manufacture of aprons and cots, that such goods constituted inputs for Modvat purposes. In that view, the benefit of Modvat was correctly extended and the proposed reference did not disclose any question of law warranting reference to the High Court. The mere pendency of an SLP against a different High Court decision was held not to convert the issue into a question of law in the present matter.

Conclusion: The proposed reference was not maintainable as no question of law arose; the application was rejected.

Final Conclusion: The decision affirms the availability of Modvat treatment for the goods in question and declines to send the matter to the High Court for reference.

Ratio Decidendi: Where the Tribunal has already determined, on the nature of the goods used in manufacture, that they are inputs for Modvat purposes, a reference will not lie in the absence of an independent question of law.

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