ORDER
S.L. Peeran, Member (J)
1. Revenue has filed this Reference application seeking reference of the following question to the High Court of Madras:
(1) Whether the Hon’ble CEGAT is correct in deciding that Modvat credit under Rule 57Q is available for goods which had no nexus in bringing about any change in the substance of the goods by direct participation in the manufacture stream by ignoring their own decision in the case of M/s. Shanmugarajan Spinning Mills P. Ltd., vide Final Order No. 1318/96 and Ref. Order No. 118/ 97 dated 12.5.97.
2. Heard Ld. SDR Shri G.S. Menon who seeks for reference of the matter as it involves question of law extracted above.
3. Ld. Counsel Shri S. Kandaswamy submits that the similar question was referred to the High Court of Madras in the case of SIV Industries Ltd. v. CCE and the High Court has already upheld the Tribunal’s order granting Modvat credit in respect of goods involved. Therefore, he submits that there is no need to refer the case again to the High Court of Madras as it is a covered issue.
4. We have carefully considered the submissions and we perused the application filed by Revenue seeking reference of the matter to the High Court. We are of the considered opinion that question raised has already been answered by large number of Tribunal judgments and the Larger Bench judgment including the High Court judgment referred to supra and a clear view has been expressed that the items in question are required for the purpose of manufacture of the final product as it has got direct participation in the manufacture. The Commissioner also took note of the Apex Court judgment rendered in Rajasthan Spinning Mills v. CCE . As the issue has been appreciated in the light of ruling of the Supreme Court, the question of referring the matter to the High Court, does not arise and we do not find any merit in this reference application and reject the same.