Later availment of higher Modvat credit held unobjectionable where the rules contained no express or implied bar.

Later availment of higher notional Modvat credit under Rule 57B was not barred by any express or implied prohibition in the relevant provisions. The Tribunal treated the departmental reference under Section 35E as vague because it merely reframed the same issue without raising an arguable question of law. On that footing, no referable legal issue arose for consideration by the High Court, and the departmental reference was rejected as not maintainable.

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Issues: Whether the departmental reference under Section 35E was maintainable on the question whether higher notional Modvat credit under Rule 57B could be availed at a later date.

Analysis: The question framed was held to be vague and, in substance, only raised whether higher notional credit could be availed later. The Tribunal found that no express or implied prohibition in the relevant Modvat provisions prevented availment of such credit at a later date. As no arguable question of law arose from the formulation, the matter did not warrant reference to the High Court.

Conclusion: The departmental reference was not maintainable and stood rejected.

Ratio Decidendi: Where the relevant Modvat provisions do not expressly or impliedly bar later availment of higher notional credit, the departmental reference on that question does not raise a referable question of law.

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