Modvat credit eligibility for lubricating oil treated as a referable question of law

Lubricating oil was considered for Modvat credit eligibility under Rule 57A of the Central Excise Rules, and the Tribunal noted that a larger bench had already taken a view supporting such eligibility. Treating the issue as a question of law fit for reference, it allowed the reference application and sent the question to the Allahabad High Court for decision.

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Issues: Whether the application for reference on the admissibility of Modvat credit on lubricating oil under Rule 57A of the Central Excise Rules should be allowed.

Analysis: The Tribunal noted that the issue concerned eligibility of lubricating oil as an input for Modvat credit and that a larger bench had taken a view supporting eligibility. In the circumstances, it treated the matter as raising a question of law fit for reference to the High Court.

Conclusion: The reference application was allowed and the question was referred to the Hon'ble Allahabad High Court.

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