Modvat credit reference failed where credit was allowed under the transitory rule and no question of law arose.

The text addresses a Revenue reference concerning Modvat credit, where the assessee had already obtained credit under the transitory provision and the earlier appeal had become infructuous. The Tribunal noted that the credit was allowed under Rule 57H, while the Commissioner's disallowance proceeded under Rule 57G, and on that basis treated the prior appeal as infructuous. The contention that the Tribunal should have awaited the outcome of the Department's appeal before the Commissioner (Appeals) was held not to raise any legal issue warranting reference. No question of law was found to arise, and the reference application was rejected.

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Issues: Whether any question of law arose in the Revenue's reference application against the Tribunal's order allowing Modvat credit, where the assessee had already obtained credit under the transitory provision and the earlier appeal had become infructuous.

Analysis: The Tribunal found that the assessee's credit had been allowed under Rule 57H, while the disallowance by the Commissioner proceeded under Rule 57G. On that basis, the earlier appeal was treated as infructuous. The contention that the Tribunal should have awaited the outcome of the Department's appeal before the Commissioner (Appeals) did not disclose any legal issue warranting reference.

Conclusion: No question of law arose, and the reference application was rejected.

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