Binding prior classification controls export incentive disputes when the same goods and facts remain unchanged.

Prior classification of the same exported goods, affirmed in earlier proceedings, remained binding because it was based on substantive evidence and there was no material change in facts. On that basis, the department could not adopt a contrary classification for export incentive purposes. The court also noted that, although an appeal was ordinarily available, forcing the petitioners to pursue it would be futile where the issue had already been conclusively determined and the impugned orders ignored that binding position; the predeposit requirement also made the alternate remedy burdensome. Writ jurisdiction was therefore exercised and the contrary orders were set aside.

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Issues: (i) Whether the earlier Tribunal decision, affirmed by the Supreme Court, concluded the classification of the exported goods for export incentive purposes in the absence of any material change in facts. (ii) Whether the petitioners could be relegated to the statutory appellate remedy instead of the High Court exercising writ jurisdiction.

Issue (i): Whether the earlier Tribunal decision, affirmed by the Supreme Court, concluded the classification of the exported goods for export incentive purposes in the absence of any material change in facts.

Analysis: The earlier adjudication had examined the nature of the product on the basis of the certificates, departmental inquiries, and surrounding material and had independently concluded that the goods were alloy steel forging (machined) and not bearing races. That finding was not dependent only on the prior classification accepted for another scheme, but rested on substantive evidence. In the present matter, the product remained the same and the rival tariff descriptions also remained unchanged. In such a situation, the departmental authority could not take a contrary view on the very same product without any material change.

Conclusion: The earlier decision bound the department, and the contrary classification adopted in the impugned orders could not be sustained.

Issue (ii): Whether the petitioners could be relegated to the statutory appellate remedy instead of the High Court exercising writ jurisdiction.

Analysis: Although the normal remedy against the adjudication order was an appeal, the Court found that the dispute had already been conclusively determined in the earlier round and that compelling the petitioners to pursue an appeal would be futile. The requirement of predeposit also made the remedy burdensome in the facts of the case. Since the impugned orders ignored the binding earlier decision and the factual position was not in dispute, the case warranted exercise of writ jurisdiction despite the existence of an alternate remedy.

Conclusion: The Court exercised writ jurisdiction and declined to relegate the petitioners to the appellate forum.

Final Conclusion: The impugned orders were set aside and the petitions were allowed, with the departmental classification and consequent demand being unsustainable in view of the earlier binding determination on the same goods.

Ratio Decidendi: Where the classification of the same goods has already been conclusively determined on the basis of substantive evidence and there is no material change in facts, the department cannot reopen the issue and the High Court may exercise writ jurisdiction despite the availability of an alternate appellate remedy.

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