Binding board circular foreclosed revenue references on Modvat credit for empty drums and barrels.

The Board's acceptance of the earlier Tribunal ruling through Circular No. 449/15/99-CX made that view binding on departmental authorities. In light of that circular, and consistent with dismissal of similar Revenue reference applications, the Tribunal treated the dispute as no longer requiring reference to the High Court on Modvat credit for empty drums and barrels. The reference applications were dismissed because the binding circular had already settled the controversy for departmental purposes.

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Issues: Whether the reference applications filed by the Revenue survived for consideration after the Board accepted the Tribunal's earlier decision by circular and whether the references should nevertheless be answered on the question relating to Modvat credit on empty drums/barrels.

Analysis: The Tribunal noted that the Board had accepted the earlier Tribunal decision through Circular No. 449/15/99-CX dated 23-3-1999. It also noted that similar reference applications filed by the Revenue had been dismissed in view of that circular, which was binding on the departmental authorities. In these circumstances, and without entering into the larger question of referability, the Tribunal treated the controversy as no longer requiring reference to the High Court.

Conclusion: The reference applications were dismissed in view of the binding Board circular.

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