Binding Larger Bench precedent sustained remand on rejected and returned goods despite pending challenge to that view.

The Tribunal was bound to follow the existing Larger Bench view in Commissioner of Central Excise, Meerut-II v. Bhushan Steel and Strips Ltd., and the pendency of the Revenue's appeal against that decision before the High Court did not justify departure from it. On that basis, the Tribunal's remand to the adjudicating authority for fresh decision, including consideration of the claimed benefit in respect of rejected and returned goods, was upheld and the challenge was found to lack merit.

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Issues: Whether the Tribunal was justified in remanding the matter to the adjudicating authority by following the Larger Bench decision and in granting the benefit claimed in respect of rejected and returned goods.

Analysis: The Tribunal had relied on the Larger Bench decision in Commissioner of Central Excise, Meerut-II v. Bhushan Steel and Strips Ltd. and restored the matter for fresh decision. The pendency of the Revenue's appeal against that Larger Bench decision before the High Court did not justify departure from it, and the Tribunal was bound to follow the existing Larger Bench view. The challenge raised in the appeal therefore did not disclose any merit.

Conclusion: The remand order was upheld and the appeal was rejected.

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