Reference to High Court accepted where identical legal issue had already been referred and merits were left undecided.

The Tribunal treated the matter as fit for reference because an identical legal issue had already been considered in another case and the Supreme Court had directed reference on the same question. It therefore accepted the reference application and forwarded the formulated question of law to the jurisdictional High Court. The Modvat eligibility issue was not decided on merits; the Tribunal confined itself to sending the legal question for determination by the High Court.

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Issues: Whether the reference application should be allowed and the question of law forwarded to the jurisdictional High Court.

Analysis: The Tribunal noted that an identical question had already been considered in another matter and that the Supreme Court had directed a reference on the same issue. In that background, the Tribunal found the present matter fit for reference of the formulated question of law to the jurisdictional High Court.

Conclusion: The reference application was accepted and the question of law was forwarded to the Rajasthan High Court.

Final Conclusion: The Tribunal did not decide the Modvat eligibility issue on merits and instead sent the legal question to the High Court for determination.

Ratio Decidendi: Where an identical legal issue has already been directed to be referred, the Tribunal may treat the matter as fit for reference and forward the formulated question to the High Court without adjudicating the merits.

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