Modvat credit for non-notified inputs raises a referable question of law under the Central Excise Rules.

Modvat credit under Rule 57A is available only for inputs covered by the relevant notification, and High Speed Diesel Oil was stated to be outside Notification No. 5/94-C.E. (N.T.) and not notified under Rule 57B. The analysis notes that credit had been allowed on the basis of an earlier Tribunal decision, but the central question was whether a non-notified input could still qualify for credit under the Central Excise Rules, 1944. That issue was treated as a question of law fit for reference to the High Court.

---

---

Issues: Whether High Speed Diesel Oil, when not notified as an eligible input, could qualify for Modvat credit under the Central Excise Rules, 1944, and whether the question arising on that point warranted reference to the High Court.

Analysis: Rule 57A permits Modvat credit only in respect of inputs specified in the notification issued under that rule. High Speed Diesel Oil was stated to be excluded from the inputs covered by Notification No. 5/94-C.E. (N.T.), dated 1-3-1994, and was also not notified under Rule 57B. The allowance of credit had been based on an earlier Tribunal decision, but the present dispute turned on whether credit could be granted for an input not notified under Rule 57A. That issue gave rise to a question of law fit for reference.

Conclusion: The question was referred to the Hon'ble High Court.

Ratio Decidendi: Modvat credit under Rule 57A is available only for inputs covered by the relevant notification, and the question whether a non-notified input can be allowed credit raises a referable question of law.

---