Taxability of job-work consumables remains governed by prior binding ruling, with liability turning on factual assessment of material transfer.

Taxability of chemicals, dyes and colours used in job work had already been settled against the revenue in an earlier binding decision, which held that such consumables are taxable while the extent of liability depends on factual examination of how much material is transferred or retained in the fabric. As that factual inquiry lies with the Assessing Officer, there was no basis to disturb the Tribunal's view or reopen the settled position. The revenue's appeals therefore failed, and the parties remain governed by the earlier decision unless it is varied by the Supreme Court.

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Issues: Whether the revenue appeals challenging the Tribunal's view on taxability and its direction that the principle should operate prospectively were liable to be allowed.

Analysis: The legal position on the taxability of chemicals, dyes and colours used in job work had already been settled against the revenue in a prior decision. That decision held that such consumables are taxable, but the extent of tax liability depends on the factual determination of how much of the material is transferred or retained in the fabric, which is for the Assessing Officer to examine on evidence. In view of that binding position, there was no basis to interfere with the Tribunal's decision in the present batch of appeals.

Conclusion: The appeals were not allowed and the revenue's challenge failed.

Final Conclusion: The batch of appeals stood dismissed, while the parties were left to be governed by the earlier decision on the issue and by any future variation of that decision by the Supreme Court.

Ratio Decidendi: Where the governing legal issue has already been decided and the remaining determination depends on factual enquiry by the assessing authority, the appellate court will not disturb the settled position merely to reopen the revenue's challenge.

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