Modvat credit on capital goods cannot be referred again once binding High Court and Supreme Court rulings have settled the issue.

A reference application seeking the High Court's opinion on Modvat credit for capital goods was held not maintainable because the issue had already been concluded by binding High Court and Supreme Court decisions. The Tribunal had earlier found the goods to be capital goods eligible for Modvat credit under Rule 57Q, and it noted that the same legal point had already attained finality through judicial pronouncements. A matter settled by binding precedent need not be referred again for a second opinion, so the reference application was rejected.

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Issues: Whether a reference application seeking opinion of the High Court was maintainable when the issue on Modvat credit and capital goods had already been concluded by High Court and Supreme Court decisions.

Analysis: The Tribunal had already decided that the goods in question were capital goods eligible for Modvat credit under Rule 57Q. In the reference proceedings, it was noticed that the Tribunal had relied on judgments of two High Courts and the Apex Court on the same legal point. A matter which has reached finality on the basis of binding judicial pronouncements is not required to be referred again for a second opinion.

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

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