COMMISSIONER OF C. EX. Vs. PARASRAMPURIA SYNTHETICS LTD.

JUDGEMENT

(1.) THIS is a reference application filed by the Revenue for referring to Honb'le High Court of Rajasthan following questions of law arising out of Tribunal's Order No. A/813/98 -NB, dated 15 -7 -1998.

(2.) WHEN the matter was called no one was present on behalf of the Respondents, M/s Parasrampuria Synthetics Ltd., nor there was any request for adjournment. We, therefore, heard Shri Y.R. Kilania, ld. JDR, and perused the records. The ld. DR submitted that the Appellate Tribunal has allowed the Modvat Credit in respect of High Speed Diesel Oil used for generation of electricity in terms of provisions of Rule 57B -l(iv); that High Speed Diesel Oil has been clearly excluded from the inputs under Notification 5/94 C.E. (N.T.), dated 1 -3 -1994; that further, HSD has also not been notified under Rule 57 -B of Central Excise Rules; that as HSD is not a specified input, the Modvat Credit of the duty paid on HSD cannot be allowed and, therefore, a question of law has arisen on account of allowing the Modvat credit of the duty paid on HSD.

(3.) RULE 57 A of the Central Excise Rules provides for the availment of Modvat Credit of the duty paid on the inputs specified in the Notification issued thereunder. The Modvat Credit of the duty was paid on HSD was allowed following the decision in the case of India Cement Ltd. v. CCE, Hyderabad, 1997 (95) E.L.T. 520 (T). Wherein the Modvat Credit was allowed on the basis of second proviso to Rule 57D(2) of the Central Excise Rules. We agree with the ld. DR that a question of law is involved as to whether Modvat Credit can be allowed in respect of a product which has not been notified as inputs in the Notification issued under Rule 57 -A. We, therefore, refer the following question of law to the Hon'ble High Court: