Rule 57C applicability on duty-paid clearances and Finance Bill explanatory notes raised a question of law for reference.

Rule 57C was considered in relation to final products cleared on payment of duty despite the availability of an exemption, and the order treated that applicability issue as a question of law fit for reference. The text also notes a separate issue on whether the explanatory notes to the Finance Bill, 1994 applied to unregistered units. Because no High Court ruling had settled the point, the reference application was accepted for further processing and the proposed statement of reference was directed to be circulated for finalisation.

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Issues: Whether a question of law arose for reference on the applicability of Rule 57C where the final products were actually cleared on payment of duty despite an available exemption, and whether the explanatory notes appended to the Finance Bill, 1994 applied to unregistered units.

Analysis: The matter turned on whether the bar under Rule 57C was attracted even when the final product was not cleared under exemption but on payment of duty. The order records that this was a question of law and that there was no pronouncement of any High Court on the point. On that basis, the reference application was treated as maintainable and the draft questions were framed for circulation to the parties.

Conclusion: A question of law requiring reference to the High Court was held to arise.

Final Conclusion: The reference application was accepted for further processing and the proposed statement of reference was directed to be circulated for finalisation.

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