Exemption for speciality oils upheld where prior Tribunal ruling already covered the same blending issue

Exemption under Notification No. 287/86-C.E. was available for speciality oils manufactured by blending two mineral oils, because the Tribunal treated the issue as already covered by its earlier decision in favour of the assessee. Applying that prior view, the adverse order could not be sustained and the notification benefit was accepted. The appeal was allowed with consequential relief.

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Issues: Whether the appellants were entitled to the benefit of Notification No. 287/86-C.E., dated 05.05.1986 in respect of their products described as speciality oils manufactured by blending two mineral oils.

Analysis: The Tribunal noted that both sides agreed that the issue was covered by its earlier decision, under which the Revenue's appeal had already been rejected on the same question. In view of that binding earlier view, the impugned order could not be sustained against the appellants.

Conclusion: The benefit of the notification was held admissible to the appellants, and the appeal was allowed with consequential relief.

Final Conclusion: The decision granted exemption-related relief to the assessee by following the Tribunal's earlier ruling on the same issue.

Ratio Decidendi: Where the very issue is covered by a prior Tribunal decision in favour of the assessee, the exemption claim under the notification is to be accepted and the adverse order set aside.

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