Exemption for processed knitted cotton fabrics upheld where binding Larger Bench precedent already covered the classification issue.

Processed knitted/crocheted cotton fabrics falling under Chapter 60 were found entitled to exemption under the relevant notification, because the exemption conditions were treated as satisfied on the facts and the issue was already covered by binding Tribunal precedent, including a Larger Bench view. The Tribunal followed that identical precedent and upheld the Commissioner (Appeals) order granting the benefit. The Revenue's challenge failed because no contrary basis was shown to depart from the settled position on classification and exemption.

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Issues: Whether processed knitted/crocheted cotton fabrics were entitled to exemption under the relevant notification and whether the Revenue's appeal against the order allowing such benefit was liable to succeed.

Analysis: The goods were found to fall under Chapter 60 of the Central Excise Tariff Act, 1985. The dispute turned on the availability of exemption under the notification governing processed knitted/crocheted cotton fabrics subject to fulfilment of stipulated conditions. The issue was treated as covered by earlier Tribunal decisions, including the Larger Bench view, which had answered the admissibility of the exemption in favour of the assessee and against the Revenue. In light of that binding and identical precedent, no ground was found to interfere with the order of the Commissioner (Appeals).

Conclusion: The exemption was held admissible on the issue raised, and the Revenue's appeal was rejected.

Ratio Decidendi: Where the classification and exemption issue is already covered by a binding Larger Bench decision on identical facts, the Tribunal will follow that decision and uphold the benefit of exemption.

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