1. This reference application is filed by the Revenue on the ground that question of law arises with reference to the final Order No.A/853/97-NB, dated 24.07.1997.
"Whether the facility of Deemed Modvat credit under Ministry of Finance Order No. MF(DR) order/TS/36/94-TRU, dated 01.03.1994 would be available to the Re-rollers even after crossing the monetary limit of Rs. 75 lacs in respect of value of clearances, in terms of Notification No. 1/93, dated 28.02.1993".
3. On going through the submissions made by both sides and taking into consideration that point of law involved herein and particularly in view of the Larger Bench decision in the case of Digambar Foundary v.CCE, Allahabad reported in 2000 (118) E.L.T. 85 (Tribunal - LB), we are of the view that this question is required to be answered by the High Court. Accordingly, we are referring the following question to the High Court of M.P. for its considered opinion.
"Whether the facility of Deemed Modvat credit under Ministry of Finance Order No. M.F. (D.R.) order/ TS/36/94-TRU, dated 01.03.1994 would be available to the Re-rollers even after crossing the monetary limit of Rs. 75 lacs in respect of value of clearances, in terms of Notification No. 1/93, dated 28.02.1993".
The respondents are engaged in the manufacture of Iron and Steel Bars, angles etc. falling under Chapter 72 of the Schedule to the Central Excise Tariff Act, 1985 and were availing benefit of SSI Exemption Notification No. 1/93 dated 28.02.1993 during the subject period. The respondents had also been availing facility of Modvat credit of duty paid on inputs, and had been availing deemed modvat credit on re-rolling inputs under Ministry of Finance order No. M.F. (D.R.) Order TS/36/94-TRU, dated 01.03.1994 which extended the facility of deemed Modvat Credit to re-rollers who have been availing exemption under Notification 1/93 dated 28.02.1993. The Collector who adjudicated the proceedings has ordered for disallowance/recovery of deemed Modvat credit amounting to Rs. 11,48,909/- on the ground that the same was not admissible to them as it was availed after crossing the monetary limit of Rs. 75 lacs in respect of clearance value of goods when the requirement started paying duty at full rate.
4. The Tribunal as per Order dated 24.07.1997 allowed the appeal of the respondent relying of its earlier decision in the case of M/s.
Venkateswara Steel Ind. reported in 1996 (86) E.L.T. 446. The Revenue has filed reference application on the ground that even in the case of M/s. Venkateswara Steel Ind. referred to above, reference application was filed under Section 35G(3) of the Act before the High Court, Chennai.
5. In the facts and circumstances and in view of our foregoing conclusion the matter is referred to the M.P. High Court (Jabalpur bench) for its considered opinion. Registry is directed to make arrangement for sending necessary annexures and statement to the Registry of the High Court. Accordingly, reference application is allowed.