Modvat credit on thrice-endorsed gate passes raised a referable question of law requiring High Court clarification.

Interpretation of Rule 57A read with Rule 57G(2) of the Central Excise Rules, 1944 on whether gate passes endorsed thrice could serve as valid duty-paying documents for Modvat credit was held to raise a referable question of law. Conflicting Tribunal views and the Larger Bench ruling in Avis Electronics supported the need for authoritative clarification. The issue was therefore referred to the High Court for opinion, and the reference application was allowed.

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Issues: Whether the question concerning the validity of gate passes endorsed thrice for availment of Modvat credit under Rule 57A read with Rule 57G(2) of the Central Excise Rules, 1944 required reference to the High Court.

Analysis: The application was under Section 35G(1) of the Central Excise Act, 1944 for reference of questions of law arising from the Tribunal's order. The disputed issue involved interpretation of Rule 57A read with Rule 57G(2) regarding whether gate passes endorsed thrice could be treated as valid duty paying documents for Modvat credit. In view of conflicting Tribunal views and the Larger Bench decision in Avis Electronics, the question was held to involve a question of law requiring authoritative determination by the High Court.

Conclusion: The question was referred to the High Court for its opinion and the application was allowed.

Final Conclusion: The Tribunal accepted that the dispute raised a referable question of law on Modvat eligibility and directed reference of the issue to the High Court.

Ratio Decidendi: Where the validity of a duty paying document for Modvat credit turns on interpretation of the relevant excise rules and conflicting Tribunal views exist, the matter gives rise to a referable question of law.

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