Finality of an earlier exemption ruling prevents the Revenue from taking a contrary stand on the same issue later.

Where the Revenue had accepted an earlier Tribunal ruling on the same small scale industry exemption issue and that ruling had attained finality, it could not later contest the identical question against another assessee on the same footing. The settled position bound the Revenue in subsequent proceedings, and the assessee remained entitled to the exemption benefit. A later amendment deleting the relevant condition did not affect the basis on which the matter was disposed of.

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Issues: Whether the Revenue could deny the small scale industry exemption under Notification No. 175/86-C.E. and Notification No. 1/93-C.E. to the assessee when an earlier Tribunal decision on the same issue had been accepted by the Revenue and had attained finality.

Analysis: The appeal turned on the effect of the Revenue's acceptance of an earlier Tribunal ruling involving the same exemption controversy. Once that decision had attained finality, the Revenue could not take a contrary stand in respect of another unit on an identical question. The Court also noted that the notification had since been amended and the relevant condition deleted, but that did not alter the basis on which the present appeal was disposed of.

Conclusion: The Revenue was precluded from challenging the similar order, and the assessee was entitled to retain the benefit of the exemption. The appeal was liable to be dismissed.

Final Conclusion: The judgment affirms that an attained finality in an earlier, identical exemption dispute binds the Revenue in later proceedings on the same issue.

Ratio Decidendi: Where the Revenue has accepted an earlier decision on an identical exemption issue and that decision has attained finality, it cannot be permitted to contest the same question against another assessee on the same footing.

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