Modvat credit on mine inputs: tribunal ordered reference of similar questions to the High Court.

The Tribunal allowed the reference application on Modvat credit for inputs used in mines, including explosives, and directed reference of the questions to the High Court. It relied on an earlier reference in the assessee's own matter involving similar issues, noting that the present dispute had a direct bearing on questions already pending before the High Court. The same course was therefore adopted for consistency, and the Registry was instructed to transmit the matter accordingly.

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Issues: Whether the reference application should be allowed and the questions relating to entitlement to Modvat credit on inputs used in mines should be referred to the High Court.

Analysis: The Tribunal noted that an earlier reference in the assessee's own matter involving similar questions had already been directed to be made to the High Court of Andhra Pradesh. Since the present dispute also concerned Modvat credit on explosives used in mines and the questions had a direct bearing on the matter already pending before the High Court, the Tribunal found it appropriate to adopt the same course.

Conclusion: The reference application was allowed and the Registry was directed to refer the matter to the High Court of Andhra Pradesh.

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