Modvat credit for transformers before 16-03-1995 referred to High Court amid conflicting decisions.

CEGAT allowed a reference application on the question whether Modvat credit was available for transformers prior to 16-03-1995. The Tribunal noted that the issue had remained contentious and that differing decisions already existed, including a Division Bench reference of the same question in another matter. In view of that position, it found it appropriate to refer the identical question to the Rajasthan High Court.

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Issues: Whether the reference application seeking reference of the question on Modvat credit eligibility for transformers prior to 16-03-1995 should be allowed.

Analysis: The issue had remained contentious and had seen differing decisions. A Division Bench had already referred the same question to the High Court in another matter. In these circumstances, the Tribunal found it appropriate to make a reference on the identical question.

Conclusion: The reference application was allowed and the question was referred to the Hon'ble Rajasthan High Court.

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