Modvat duty incidence and Section 11B treatment of captive consumption were referred to the High Court for opinion.

The article notes that a reference application was allowed on two central excise questions: whether, after Modvat is availed, the duty incidence on inputs used in manufacturing final products is deemed to have been passed on to customers, and whether the proviso to Section 11B of the Central Excise Act applies to duty on captively consumed goods. The tribunal directed that these questions of law be referred to the High Court for opinion.

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Issues: Whether the reference application should be allowed on the question whether the incidence of duty on inputs, after availing Modvat, is deemed to have been passed on to customers when such inputs are used in the manufacture of final products, and whether the proviso to Section 11B of the Central Excise Act applies to duty on captively consumed goods.

Outcome: The reference application was allowed and the questions of law were directed to be referred for opinion of the High Court.

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