Central excise classification of cigarette packet slides and shells was resolved in favour of exemption on binding precedent.

Slides and outer shells used for cigarette packets were held, on the basis of earlier Tribunal and High Court rulings, not to be subjected to central excise duty in a way that would duplicate the levy already borne by the cigarettes contained in them. The Tribunal treated the issue as covered by binding precedent and accepted the assessee's claim to exemption under the relevant notifications, while rejecting the departmental contention on classification and duty liability. The appeal was therefore allowed in favour of the assessee on both duty and exemption issues.

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Issues: Whether the goods described as slides and shells were liable to be classified so as to attract central excise duty, and whether the assessee was entitled to exemption under the relevant notifications.

Analysis: The goods in question were considered in the light of earlier Tribunal and High Court rulings holding that slides and outer shells used for cigarette packets could not be subjected to duty in a manner that duplicated the levy already suffered by the cigarettes contained in them. Following the binding ratio of those decisions, the Tribunal accepted the assessee's contention that the matter stood covered in its favour. The departmental stand was also treated as covered against it by the cited precedent.

Conclusion: The appeal was allowed and the assessee succeeded on the issue of duty liability and exemption.

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