- (1.) Heard learned counsel for parties.
(2.) This reference has come up pursuant to judgment of Apex Court in Civil Appeal No. 14 of 2001, decided on 3rd January, 2001, whereby following two questions have been referred to the High Court for its opinion. "(a) Whether HSD can be taken as input as mentioned in section 'AAA' of Central Excise Rules, 1944 and as defined under Rule 57A of Central Excise Rules, 1944? (b) Whether the modvat credit can be allowed on the High Speed Diesel Oil falling under Heading No. 27.10 of Central Excise Tariff Act, 1985, which cannot be taken as inputs and which is specifically excluded from the purview of the modvat under Rule 57A of Rules.?"
(3.) Brief facts, giving rise to aforesaid dispute, are as under :;