ABDUL HADI, J.

Pursuant to the order of this Court under Section 35G(3) of the Central Excises and Salt Act, 1944 (hereinafter referred to as 'The Act') dated 22-11-1989 in R.C.P. No. 20 of 1989, directing the Customs, Excise and Gold (Control) Appellate Tribunal, Southern Regional Bench of Madras, to refer four questions of law specified below, to this Court for its opinion, the said Tribunal has referred the same and thus this R.C. No. 1 of 1990 is before us. The said four questions arise out of the said Tribunal's order dated 15-10-1987 in Excise Appeal No. 271 of 1987 (MAS.) filed by the appellant therein. Pond's (India) Limited (the applicant before us).

2. The said questions relate to scheme known as MODVAT. MODVAT is short form of Modified Value Added Tax. This scheme enables the manufacturers, whose manufactured products (termed as "final products") suffer excise duty under the Act, to obtain instant and complete reimbursement of specified duty paid on the goods used in or in relation to the manufacture of the said products. (These goods are referred to as "inputs"). In other words, the charge of excise duty on the abovesaid final products is only on thevalue adde