DTA clearances by a 100% EOU: Larger Bench ruling controlled duty payment, and the demand was held unsustainable.

DTA clearances by a 100% EOU were treated as governed by the Board's circular and the corresponding notification, and the dispute was already covered by a Larger Bench ruling supporting the appellant's method of duty payment. The appellate authority was bound to apply that Larger Bench decision, and ignoring it after noticing it was described as judicial indiscipline. On that basis, the demand was held unsustainable and the appeal was allowed in favour of the assessee.

---

---

Issues: Whether the demand arising from DTA clearances by a 100% EOU was sustainable when duty had been paid in terms of the Board's circular and the issue stood covered by a Larger Bench decision.

Analysis: The duty liability on DTA clearances was governed by the Board's circular and the corresponding notification, and the controversy had already been settled by the Larger Bench in favour of the method adopted by the appellant. The appellate authority was bound to follow the Larger Bench ruling. Failure to do so, despite noticing it, amounted to judicial indiscipline.

Conclusion: The demand was not sustainable and the appeal was allowed in favour of the assessee.

---