Modvat credit on attested photocopies of gate passes raised a question of law for High Court consideration.

A reference under Section 35G(1) of the Central Excise Act, 1944 concerned whether Modvat credit could be claimed on attested photocopies of gate passes when the originals were lost. The Tribunal noted its earlier view that, after the amendment of Rule 57G(4), credit could not be taken on photocopies of duty-paying documents, but also found conflicting authorities supporting credit on authenticated photocopies and a High Court view against mechanical rejection. In view of this divergence, it treated the issue as requiring consideration by the jurisdictional High Court and allowed the reference application.

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Issues: Whether a question of law arose for reference to the High Court on the assessee's entitlement to Modvat credit on the basis of attested photocopies of gate passes where the originals were lost.

Analysis: The application sought a reference under Section 35G(1) of the Central Excise Act, 1944. The Tribunal noted that the credit had been disallowed on the basis of its earlier view that, after the amendment of Rule 57G(4), credit could not be taken on photocopies of duty-paying documents. The record also reflected conflicting decisions, including decisions supporting the availability of credit on authenticated photocopies and a High Court decision indicating that the claim could not be rejected mechanically. In view of these differing authorities, the Tribunal found that the issue required consideration by the jurisdictional High Court.

Conclusion: A question of law was referred to the High Court, and the reference application was allowed.

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