Exemption eligibility affecting rate of duty bars reference jurisdiction under the Central Excise Act.

A reference application under Section 35G(1) of the Central Excise Act was barred where the underlying dispute concerned eligibility to exemption under Notification No. 167/79, because that issue had a direct bearing on the rate of duty applicable for assessment. The text states that a reference is not maintainable when the order appealed against relates to any question having a relation to the rate of duty of excise or the value of goods for assessment purposes. The reference application was therefore rejected as not maintainable.

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Issues: Whether a reference application under Section 35G(1) of the Central Excise Act, 1944 was maintainable where the underlying dispute concerned eligibility to exemption under Notification No. 167/79 and thus related to the rate of duty for purposes of assessment.

Analysis: The dispute in the appeal was held to concern eligibility to exemption from duty under the notification, which had a direct bearing on the rate of duty applicable for assessment of the goods. A reference application is barred by Section 35G(1) where the order appealed against relates, among other things, to the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment.

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

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