Settled precedent on Modvat credit for measuring instruments meant no question of law arose for reference.

Modvat credit for measuring and testing instruments was treated as admissible capital goods under Rule 57Q because the Tribunal applied settled case law recognising such equipment as eligible. Revenue failed to cite any contrary authority or show that the supporting decisions had been overruled. As the final order was only a straightforward application of established precedent and not a fresh legal controversy, no question of law arose for reference. The reference application was therefore not maintainable.

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Issues: Whether the Revenue had made out a question of law for reference on the grant of Modvat credit on measuring instruments as capital goods under Rule 57Q of the Central Excise Rules, 1944.

Analysis: The Tribunal found that the earlier final order had applied settled case-law on the eligibility of measuring and testing instruments, including decisions recognising such goods as eligible capital goods. Revenue did not cite any contrary authority or show that the decisions relied upon had been overruled by a higher court. In the absence of any conflicting precedent or unsettled legal position, the earlier order was treated as a straightforward application of established law rather than a ruling raising a fresh legal controversy.

Conclusion: No question of law arose from the final order, and the reference application was not maintainable.

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