The central legal point established in the judgment is the interpretation of whether the additional duty of excise could be utilized towards the payment of duty of excise on final products leviable under specific Acts.

P.C. Verma, J. : The respondent Is holding central excise registration for the manufacture of Flock fabrics falling under Chapter sub-heading no. 5907.12 of Central Excise Tariff Act,1985.

2. The assessee is manufacturing the said fabrics which is partially or fully covered with textile flocks or with preparation containing textile flocks falling under Central Excise Tariff sub heading 5907.11.12 and 90 of Central Excise Tariff Act, 1985 on which additional duty is leviable under Excise (Goods of Special Importance) Act, 1957. This is besides basic excise duty. During the checking of monthly returns in the form RT - 12 for the period April, 2000, it was found that the CENVAT credit of additional duty of excise amounting to Rs. 26.20 Lakhs ( approximately ) was transferred from additional duty of excise to basic duty of excise, and the same was utilised towards payment of basic excise duty in as much as closing balance in respect of additional duty of excise and basic duty of excise stood at Rs. 26.20 Lakhs and 6.20 Lakhs respectively.

3. From the aforesaid facts, point which emerges for determination under section 35 H of the Central Excise Act is whether the additional duty of excise could be utilised towards the 'Payment of duty of excise of final. products leviable under the Additional Duties of Excise (Textile and Textile Articles) Act or Additional Duties of Excise (Goods of Special Importance) Act.

4. Therefore, this reference raises a very important question of law under section 35H of the Act that question is formulated at page 12 of the paper book. Therefore, reference stands admitted.

5. The application of the department seeking reference is hereby granted. CEGAT is directed to forward all records and proceedings to this Court.

6. Office is directed to write a letter to Registrar, CEGAT to forward the papers immediately. On receipt of the records and proceedings, the department is directed to move the Court for fixing a date of hearing.