Classification based on overruled precedent requires fresh adjudication and remand under current binding law.

Classification based on Tribunal decisions later reversed by the Supreme Court or overruled by a Larger Bench could not be sustained on the existing reasoning. The classification issue and related duty demand therefore required reconsideration on the evidence on record and the binding law then applicable. The matter was remanded for de novo adjudication with a fresh speaking order, and the assessee was to be given a reasonable opportunity of hearing in accordance with natural justice.

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Issues: Whether the classification dispute and duty demand required remand because the adjudicating authority had relied on decisions that were subsequently reversed or overruled.

Analysis: The impugned classification was based on earlier Tribunal decisions, one of which had been reversed by the Supreme Court and another overruled by a Larger Bench. In that situation, the classification issue could not be sustained on the existing reasoning and had to be reconsidered on the basis of the evidence on record and the binding law then applicable, after giving the assessee a reasonable opportunity of hearing.

Conclusion: The matter was remanded for de novo consideration and fresh speaking order in accordance with law and natural justice.

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