2005 (9) TMI 108 - HC - Central Excise

Summary

Issues:
Application under Section 35(H)(I) of Central Excise Act for reference on questions from Tribunal's order.

Analysis:
The Revenue filed an application under Section 35(H)(I) of the Central Excise Act, seeking reference on questions arising from the Tribunal's order dated 23-3-2000. The questions proposed by the Revenue included whether the appellate authority could disturb the finding of the Adjudicating Authority without appreciating the evidence, the permissibility of Modvat credit on endorsed invoices, and the justification of permitting Modvat based on dealer's invoices not produced before the adjudicating authority. The High Court heard counsels for both parties and concluded that the application did not involve any referable question arising from the Tribunal's order, leading to the dismissal of the application.

The main issue before the adjudicating authorities and the Tribunal was whether invoices issued by the manufacturer company's depot could be considered valid documents for claiming Modvat credit. The Tribunal, in its order, allowed the appeal by the assessee, stating that the invoices from the depot were valid for claiming Modvat credit. The Tribunal emphasized that the documents were genuine, and the assessee was entitled to claim the credit based on these documents. The High Court noted that this finding was a question of fact and did not involve any question of law as proposed by the Revenue.

The High Court emphasized that for a question of law to arise, it must be decided by the Tribunal as a matter of law and must pertain to legal issues rather than factual determinations. In this case, the Court found that the issues raised by the Revenue were primarily factual in nature and did not present any legal questions for reference. Consequently, the application was dismissed on the grounds that the proposed questions did not arise from the case and were essentially related to factual findings rather than legal interpretations.

In conclusion, the High Court dismissed the application by the Revenue as it did not involve any referable legal questions arising from the Tribunal's order. The Court highlighted that the issues raised were factual in nature and did not meet the criteria for reference on legal grounds. Therefore, the application was rejected, and no costs were awarded in the matter.