Conflicting Tribunal views on Modvat credit for evaporator boats created a referable question of law for High Court reference.

Conflicting Tribunal views on the eligibility of evaporator boats for Modvat credit under Rule 57A, and on whether they could be treated as tools or equipment, gave rise to a referable question of law. Because different Benches had reached divergent conclusions on the same issue and the applicant had formulated specific legal questions, the Tribunal held that reference to the High Court was warranted. The matter was accordingly directed to be referred on the questions raised by the applicant.

---

---

Issues: Whether a question of law arose from the conflicting Tribunal decisions so as to warrant reference to the High Court under Section 35G.

Analysis: The Tribunal noted that different Benches had taken divergent views on the eligibility of evaporator boats for Modvat credit under Rule 57A and on whether such items could be treated as tools or equipment. In view of the conflict in decisions and the questions formulated by the applicant, the Tribunal held that a referable question of law had arisen.

Conclusion: The reference was warranted and the matter was directed to be referred to the High Court on the questions formulated by the applicant.

---