Judgment:
1. When the case was called Shri Amit Awasthi, learned Advocate appeared on behalf of the Respondents.
2. Learned JDR appearing on behalf of the applicant Revenue submits that in this case the Final Order was passed following the decision of Moosa Haji Patmwala Pvt. Ltd. v. C.C.E., reported in 1996 (83) E.L.T.620 (Tribunal) and the benefit of Modvat credit was extended to the Gate passes issued before 30-3-1994 and endorsed thereafter. He submits that in the case of Moosa Haji Patrawala Pvt. Ltd. (Supra), the Tribunal vide Order No. 3406/96-WZB, dated 7-10-1996, 1997 (92) E.L.T.588 (Tribunal) made a reference to the Hon'ble High Court of Bombay. He submits that the application be allowed.
4. This reference application has been filed by the Revenue seeking a reference to be made to the Hon'ble High Court referring the following questions of law for their valuable plea: "Whether GP-1 endorsed after 31-3-1994 but on which credit taken on or before 30-6-1994 are valid documents for availing Modvat credit as per Notification No. 16/94-CE, dated 30-3-1994 since the GP-Is ceases to be a prescribed documents after 31-3-1994." 5. I have examined Tribunal Order No.A/468/98-NB, dated 14-5-1998 keeping in view the submissions made by the Revenue.
6. The Modvat credit Scheme was first introduced in March, 1986 vide incorporation of Rules 57A to 57J in the Central Excise Rules, 1944 to permit availment of credit of duty paid on excisable goods used as inputs in the manufacture of final products. Rule 57G prescribed the procedure to be observed by the manufacturer intending to take such credit. The proviso to Sub-rule (2) reads as follows : "Provided that no credit shall be taken unless the inputs are received in the factory under the cover of an invoice; issued under Rule 52A, an AR-1, or triplicate copy of a Bill of Entry or any other document as may be prescribed by the Central Government by notification in the Official Gazette in this behalf evidencing the payment of duty on such inputs." 7. The proviso was amended from time to time but the authority vested in the Central Government to prescribe any document evidencing the payment of duty on inputs was not amended. The Ministry from time to time issued certain instructions prescribing certain documents under this Proviso. On 1-3-1994 vide Notification No. 4/94-C.E. (N.T.) the proviso was amended stipulating that such prescription by the Central Government should be by Notification in the Official Gazette.
Notification No. 16/94-CE. (N.T.), dated 30-3-1994 was, therefore, issued enumerating the documents prescribed as original documents and referring file number and the date of the order under which the various documents were initially prescribed to be original documents. The Notification and the two entries of the Table which are relevant to the disposal of this application are reproduced below : "In exercise of the powers conferred by Rule 57G of the Central Excise Rules, 1944, the Central Government hereby prescribes the documents specified in Column (3) of the Table hereto annexed and issued under the authority of Central Board of Excise & Customs or the Central Excise Rules, 1944 specified in the corresponding entry in Column (2) of the said Table for the purpose of the said Rule: Provided that the documents have been issued before 1-4-1984 and the credit under the said Rule has been taken on or before 30-6-1994." TABLE---------------------------------------------------------------------------Sl. No. Authority of CBEC or the Central Ex- Documents cise Rules, 1944.--------------------------------------------------------------------------- 1 2 3---------------------------------------------------------------------------1 to xxxxxxx xxxxxxxx10 (i) F.No. 263/26/88-CX.8 dt. 23rd Jan., Endorsed Gate passes 1989 subsidiary Gate passes/Certificate.(ii) F.No. 263/19/89-CX. dt. 17th April, 1989(iii) F.No. B-22/88/86-TRU, dt. 10th April, 198612.
Rule 52A as it stood before 1st April, Gate pass issued under 1944 " Rule 52A, as it stoodbe-13.
xxxxxxxx xxxxxxxx--------------------------------------------------------------------------- 8. The proviso to the Notification states that the authorised documents enumerated in the Table thereunder had to be issued before 1-4-1994. No Gate passes could be issued after this date since the very institution ceased to exist with effect from 1-4-1994 in view of the amendment of Rule 52A.9. The facility of endorsing Gate pass co-existed with Gate pass.
Therefore, the endorsed Gate pass in order to derive benefit of this Notification should also have been issued before 1-4-1994. In other words this Notification would cover only those Gate passes which were issued or were endorsed before 1-4-1994.
10. In a large number or judgments the manner and method of interpretation of taxing statute is to be interpreted strictly and literally. The strict construction of notification is that, in order to become legible documents, the endorsed Gate pass must have been endorsed prior to the date 1-4-1994. It would, therefore, appear that under this Notification a Gate pass issued prior to 1-4-1994 but endorsed after this date would cease to become eligible document.
11. I am satisfied that a question of law does arise out of the order of the Tribunal which is required to be referred to the Hon'ble High Court. The question of law is framed as under : "Whether Gate passes issued prior to 1-4-1994 but endorsed after that date would fall under the coverage of entry No. 16 in the Table to the Notification No. 16/94-CE. (N.T.), dated 30-3-1994 and would consequently become eligible for taking credit under the Modvat Scheme?"