Modvat credit reference refused where settled precedent left no substantial question of law.

A reference application under Section 35G(1) of the Central Excise Act was held not maintainable because the dispute on Modvat credit for capital goods was already covered by precedent. The Tribunal noted that the Commissioner (Appeals) had accepted the assessee's declaration and records, and had rejected the Revenue's objection regarding duplicate invoices. As no fresh or substantial question of law arose from the Revenue's grounds, the request to draw up a statement of case was refused and the reference application was rejected.

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Issues: Whether the reference application under Section 35G(1) of the Central Excise Act, 1944 disclosed any question of law for reference to the High Court.

Analysis: The Tribunal's earlier order was examined in the light of the Commissioner (Appeals)' reasoning on Modvat credit for capital goods. The order recorded that the Commissioner (Appeals) had accepted the assessee's declaration and supporting records, and had rejected the Revenue's objection based on the alleged absence of duplicate invoices. It was also noted that the Tribunal had confirmed the view by referring to earlier decisions and that the issue had already been settled by precedent. On that basis, the grounds urged by Revenue were treated as raising no fresh question of law.

Conclusion: No referable question of law arose, and the reference application was rejected.

Final Conclusion: The matter was finally disposed of by declining to draw up a statement of case, as the dispute was held to be covered by existing precedent and not fit for reference.

Ratio Decidendi: A reference under Section 35G(1) of the Central Excise Act, 1944 is not maintainable where the issue raised is already settled by precedent and does not give rise to any substantial question of law.

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