Modvat credit on job-worked goods cannot be reopened when the point is already settled and accepted by the High Court.

A reference application does not raise a fresh referable question of law where the Tribunal's earlier ruling on Modvat credit for job-worked goods has already been followed and approved by the High Court. The earlier view was that, if the job worker pays duty, the final manufacturer may follow the procedure for duty-paid goods to avail credit, and compliance with Rule 57F(2) is sufficient; the job worker is not required to claim Notification No. 214/86. As the point was already settled, the reference was not maintainable and was rejected.

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Issues: Whether the reference application raised any referable question of law when the Tribunal's earlier decision on Modvat credit on job-worked goods had already been followed and accepted by the High Court.

Analysis: The Tribunal's earlier decision had held that where the job worker pays duty, the manufacturer of the final product may follow the procedure applicable to duty-paid goods for availing Modvat credit, and that the job worker is not compelled to take the benefit of Notification No. 214/86. It was also held that compliance with the procedure under Rule 57F(2) of the Central Excise Rules, 1944 by the manufacturer sending goods for job work is sufficient, and the job worker's payment of duty does not alter the legal position. Since that precedent had already been followed with approval by the High Court, the same point could not be reopened through a fresh reference.

Conclusion: The reference application was not maintainable and was rejected.

Final Conclusion: The order conclusively declined to refer the proposed questions of law, leaving the Tribunal's earlier view undisturbed and operative.

Ratio Decidendi: A question already covered by an earlier Tribunal decision accepted by the High Court does not give rise to a fresh referable question of law.

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