Tribunal refers conflicting excisability issue to Larger Bench, grants waiver, and stays recovery pending appeal.

The Tribunal found that the decision in the appellant's case was per incuriam due to conflicting judgments on the excisability of impregnated fabrics. As a result, the matter was referred to a Larger Bench for resolution. The appellant's application for waiver of pre-deposit was allowed, and recovery of dues was stayed pending appeal disposal. The Tribunal instructed the registry to transmit the order and relevant judgments to the Hon'ble President for necessary action.

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Issues:
1. Excisability of goods manufactured by the appellant.

Analysis:
The case involves the excisability of goods manufactured by the appellant, specifically woven fabrics used in the production of tubular bags for electrical batteries. The appellant procured polyester yarn, weaved special fabrics, impregnated them, inserted metal rods, and subjected them to heat treatment to create tubular bags. The Revenue alleged that the appellant contravened Central Excise Rules by captively consuming impregnated fabrics without paying duty on the final products. Show cause notices were issued, demands confirmed, and appeals rejected by the Adjudicating Authority and Commissioner (Appeals).

The appellant argued that the excisability of the impregnated fabrics needed further examination, citing past Tribunal decisions. The Revenue contended that the issue was settled in the appellant's previous case and required a pre-deposit. The appellant claimed a contrary view existed on the issue, urging reconsideration due to the alleged per incuriam nature of the Tribunal's decision in their case.

The Tribunal reviewed past orders in the appellant's case and noted conflicting views on the marketability of similar products. A coordinate Bench's decision in an unrelated case contradicted the Tribunal's ruling, leading to a dichotomous situation. The Tribunal concluded that the decision in the appellant's case was per incuriam as it did not consider the conflicting judgment. Therefore, the matter was referred to the Hon'ble President for a Larger Bench to settle the dispute.

As the matter was referred to a Larger Bench, the application for waiver of the pre-deposit was allowed, and recovery stayed until the appeal's disposal. The Tribunal directed the registry to forward the order and relevant judgments to the Hon'ble President for further action.

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