Reference jurisdiction under Central Excise law is limited to substantial questions of law and cannot revisit natural justice findings.

Reference jurisdiction under Section 35G of the Central Excise Act is confined to a substantial question of law arising from the Tribunal's order, and it cannot be used to reopen the Tribunal's assessment of procedural fairness or the correctness of its discretionary relief. Where the Tribunal set aside adjudication because the show cause notice did not state the grounds for disallowing inputs and this amounted to breach of natural justice, a reference application challenging that conclusion was not maintainable. The reference application was rejected.

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Issues: Whether a reference application under Section 35G of the Central Excise Act, 1944 could be maintained against the Tribunal's order setting aside the adjudication for violation of natural justice and directing further proceedings.

Analysis: The reference jurisdiction under Section 35G is confined to a substantial question of law arising from the Tribunal's order and cannot be used to test the propriety or legality of that order as such. The Tribunal had proceeded on the basis that the show cause notice failed to state the grounds on which the inputs were proposed to be disallowed, and that this defect resulted in breach of natural justice. The application sought to reopen the correctness of that conclusion, which was not a permissible ground for reference.

Conclusion: The reference application was not maintainable on the grounds urged and was rejected, which is in favour of the Revenue.

Ratio Decidendi: Reference jurisdiction under Section 35G of the Central Excise Act, 1944 lies only when a substantial question of law arises from the Tribunal's order, and it cannot be invoked merely to challenge the Tribunal's appraisal of procedural fairness or the correctness of its discretionary relief.

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