Binding Supreme Court view required rectification of the excise order on Rule 57CC and bagasse clearance.

An order passed without considering a binding Supreme Court-approved view is liable to rectification, and that principle was applied to amend the earlier order concerning Rule 57CC of the Central Excise Rules, 1944 and bagasse cleared during sugar manufacture. The Tribunal noted that the issue had already been decided in favour of the assessee in a later order following an earlier Division Bench decision upheld by the Supreme Court. On that basis, the paragraph directing remand was modified, and the impugned order was set aside with the matter remanded to the Commissioner (Appeals) for fresh decision in accordance with the settled legal position.

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Issues: Whether the order dated 10-4-2007 required rectification for non-consideration of the Supreme Court-approved view on the applicability of Rule 57CC of the Central Excise Rules, 1944 to bagasse cleared during manufacture of sugar.

Analysis: The Tribunal noted that the same issue had already been decided in favour of the assessee in a later Tribunal order following the earlier Division Bench decision, which had been upheld by the Supreme Court. It further relied on the principle that an order passed without considering a binding Supreme Court decision calls for rectification. In light of that settled position, the earlier paragraph directing remand was liable to be modified.

Conclusion: The rectification applications were allowed and the earlier order was amended to set aside the impugned order and remand the matter to the Commissioner (Appeals) for fresh decision in accordance with the settled legal position.

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