Modvat credit and SSI exemption dispute referred to High Court on questions of law

The Tribunal accepted that the Revenue's proposed questions of law did arise for reference to the High Court, relying on an earlier order on a similar issue. The points accepted included whether an assessee could choose between paying duty with Modvat credit and claiming SSI exemption, and whether Rule 57C of the Central Excise Rules, 1944 applied to clearances made on payment of duty despite the availability of exemption. The reference was allowed and the matter was directed to be referred to the High Court.

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Issues: Whether the questions of law proposed by the Revenue arose for reference to the High Court.

Analysis: The Tribunal noted that on a similar issue a reference application had already been allowed. After considering that earlier order, it accepted that the proposed points of law did arise, including the issue whether the assessee could choose between payment of duty with Modvat credit and SSI exemption, and whether Rule 57C of the Central Excise Rules, 1944 applied to clearances made on payment of duty notwithstanding availability of exemption.

Conclusion: The reference was allowed and the matter was directed to be referred to the High Court.

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