Binding precedent controls education cess liability on DTA clearances unless stayed or reversed.

A 100% export-oriented unit was not liable to pay education cess again on domestic tariff area clearances where the issue had already been decided in its favour by an earlier Tribunal ruling and followed in its own case. Mere filing of an appeal against that precedent did not justify ignoring it, because no stay or reversal had been shown. The Tribunal therefore held that the existing precedent remained binding and no contrary ground survived in the Revenue's challenge.

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Issues: Whether a 100% export-oriented unit was liable to pay education cess again on clearances made to the domestic tariff area.

Analysis: The demand had already been dropped by the adjudicating authority following an earlier Tribunal decision holding that education cess was not payable again on such clearances. The Revenue did not dispute the applicability of that decision on the issue, and only contended that the earlier ruling had been appealed. The Tribunal held that mere filing of an appeal before a higher forum does not justify ignoring an existing precedent, particularly when there is no stay of its operation. The issue having already been decided and followed in the assessee's own case, no contrary ground survived in the Revenue's appeal.

Conclusion: The assessee was not liable to pay education cess again on DTA clearances, and the Revenue's appeal was rejected.

Final Conclusion: The decision reaffirmed that an existing precedent remains binding unless stayed or reversed, and the departmental challenge to the cess demand failed.

Ratio Decidendi: A precedent decision must be followed unless stayed or set aside, and a mere pendency of appeal against that precedent does not permit departure from it.

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