2000 (12) TMI 574 - AT - Central Excise

Summary

Issues:
1. Whether gate passes issued prior to 1-4-1994 but endorsed after that date would be eligible for Modvat credit under the Central Excise Rules.
2. Whether the Tribunal correctly dismissed the Department's appeal when a similar issue is pending before the High Courts.

Analysis:
1. The Department filed a reference application questioning whether gate passes endorsed after 1-4-1994 would qualify for Modvat credit under Notification No. 16/94-C.E. (N.T.). The Department argued that a similar issue arose in a previous case, Moosa Haji Patrawala, and was referred to the Mumbai High Court. The Consultant opposed, citing a different Tribunal decision in the case of Chaphekar Engg. P. Ltd. v. CCE, Pune, and argued that the reference should be made based on that decision. The Tribunal found merit in the Department's argument, noting that the issue in question was similar to the one in Moosa Haji Patrawala and the decision in Chaphekar Engg. P. Ltd. The Tribunal rejected the Consultant's argument and decided to refer the question to the appropriate High Court for clarification.

2. The second issue raised was whether the Tribunal erred in dismissing the Department's appeal when a similar issue was pending before the High Courts. The Tribunal clarified that the mere pendency of a similar issue before the High Courts does not impact the finality and precedent value of the Tribunal's decision. Therefore, the second question raised by the Department was deemed not suitable for reference to a High Court. The Tribunal allowed the reference application in part, referring the first question to the High Court of Punjab & Haryana for consideration in accordance with the Central Excise Act.

In conclusion, the Tribunal decided to refer the question regarding the eligibility of gate passes for Modvat credit to the High Court, while dismissing the second question related to the Tribunal's dismissal of the Department's appeal. The decision was made based on the similarity of the issue with previous cases and the legal principles governing such references.