Conflicting precedent on credit reversal for by-products in gelatine manufacture sent to a Larger Bench.

A dispute arose on whether 8% of the value of exempted goods was payable under the relevant credit rules for mother liquor and other by-products generated during gelatine manufacture. The Tribunal noted conflicting precedent on this issue and, because the inconsistency required resolution, directed that the matter be placed before the Hon'ble President for constitution of a Larger Bench to determine the question.

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Issues: Whether 8% of the value of exempted goods was payable under the relevant credit rules in respect of mother liquor/by-products generated during manufacture of gelatine, and whether the conflicting Tribunal decisions required reference to a Larger Bench.

Outcome: The Tribunal noted the conflict in precedent and directed that the matter be placed before the Hon'ble President for constitution of a Larger Bench to decide the issue.

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