Modvat credit on pre-1994 gate passes endorsed later was treated as a referable question of law.

Gate passes issued before 1-4-1994 and endorsed thereafter were examined as documents for availing Modvat credit under Rule 57G of the Central Excise Rules, 1944. The Tribunal noted that an identical issue had already been treated by a coordinate Bench as giving rise to a referable question of law, and it found no reason to depart from that view. On that basis, it held that a point of law arose and directed the question on the validity of such gate passes to be referred to the High Court.

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Issues: Whether a point of law arose for reference to the High Court on the validity of gate passes issued before 1-4-1994 and endorsed thereafter as documents for availing Modvat credit under Rule 57G of the Central Excise Rules, 1944.

Analysis: The Tribunal noted that the same issue had already been considered by the West Regional Bench in an earlier matter and that the Department's reference application in that matter had been allowed. Following that view, the Tribunal found no reason to differ. On that basis, it held that the question raised was a point of law fit for reference under the reference jurisdiction invoked by the Department.

Conclusion: A point of law was held to arise, and the question regarding the validity of the gate passes was directed to be referred to the High Court.

Ratio Decidendi: Where an identical issue has already been treated by a coordinate Bench as giving rise to a referable question of law, the Tribunal may hold that a point of law arises and direct reference to the High Court.

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