Classification under Chapter 86 and exemption benefit upheld after the dispute had attained finality in the respondent's own case.

Goods manufactured by the respondent were held to remain classifiable under Chapter 86 with the benefit of Notification No. 62/95, because the same classification and exemption dispute had already attained finality in the respondent's own case before the Supreme Court. On that binding position and the principle of judicial discipline, the later demand raised through subsequent show cause notices could not survive, particularly in light of Notification No. 30/2005 dated 05/07/2005. The impugned order dropping the demand was therefore upheld in favour of the respondent.

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Issues: Whether the goods manufactured by the respondent were classifiable under Chapter 86 and entitled to exemption under Notification No.62/95, and whether the later demand could survive after the earlier final decision and Notification No.30/2005 dated 05/07/2005.

Analysis: The Tribunal noted that the classification and exemption dispute for the same goods had already travelled to the Supreme Court in the respondent's own case, where the matter was disposed of on the basis that exemption had already been granted and nothing survived. The earlier Tribunal view classifying all the products under Chapter 86 and allowing the benefit of Notification No.62/95 had thus attained finality. Following that binding position and judicial discipline, the later demand raised in subsequent show cause notices could not be sustained.

Conclusion: The demand was not sustainable and the impugned order dropping the demand was upheld in favour of the respondent.

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