Reference of a question of law allowed where the same Modvat credit issue was already pending before the High Court.

Admissibility of Modvat credit on wire mesh and felts under Rule 57A of the Central Excise Rules, 1944 was treated as a question already pending reference before the High Court in an earlier matter. On that basis, the Tribunal found no reason to reject the Department's reference application for stating the same question of law. The application was allowed and the identified question was directed to be referred to the High Court under Section 35G(1) of the Central Excise Act, 1944. The operative effect was that the Department succeeded in obtaining reference of the question already under consideration in an earlier case.

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Issues: Whether the Department's reference application for stating a question of law to the High Court was liable to be allowed when the same question had already been referred in an earlier matter.

Analysis: The question proposed for reference concerned admissibility of Modvat credit on wire mesh and felts under Rule 57A of the Central Excise Rules, 1944. The Tribunal found that the very same question had already been referred to the jurisdictional High Court in an earlier case and that the earlier Tribunal decision on the issue had been followed below. In these circumstances, there was no basis to reject the application.

Conclusion: The reference application was allowed and the question of law was directed to be referred to the High Court under Section 35G(1) of the Central Excise Act, 1944.

Final Conclusion: The Department succeeded in obtaining reference of the identified question of law, and the matter was disposed of by allowing the application.

Ratio Decidendi: Where the proposed question of law is already pending reference before the High Court in an earlier matter, the Tribunal may allow a subsequent reference application and direct reference of that question.

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