Modvat containers not dutiable where binding Tribunal precedent still applied, so Revenue's appeal failed.

Empty M.S. drums, HDPE drums, jerry cans and similar containers used to receive modvatable inputs were not treated as dutiable merely because the inputs had been emptied. The Tribunal noted that earlier decisions on the same issue were still in force, with no indication that they had been stayed or neutralised by the Supreme Court, and therefore those rulings had to be followed until set aside by a higher forum. On that basis, the Revenue's duty demand on the containers was rejected and the Revenue's appeal failed.

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Issues: Whether empty M.S. drums, HDPE drums, jerry cans, and similar containers used for receiving modvatable inputs were liable to be cleared on payment of duty after emptying the inputs contained therein.

Analysis: The issue had already been decided by earlier Tribunal decisions relied upon by the appellate authority. Those decisions were shown to be in force and there was no indication that their operation had been stayed or otherwise neutralised by the Supreme Court. In such circumstances, decisions of the Tribunal holding the field were required to be followed until set aside by a higher forum.

Conclusion: The containers were not held liable to duty on the basis urged by the Revenue, and the Revenue's appeal failed.

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