Consistency in tax classification requires authorities to follow an assessee's earlier accepted decision on identical transactions unless facts differ.

Where identical transactions had already been finally accepted in the assessee's own case, judicial discipline and consistency required the revenue and appellate authorities to follow that view unless distinguishing facts were shown. The Tribunal's failure to consider the earlier decision on the same classification issue under the Tamil Nadu General Sales Tax Act, 1959 rendered its approach inconsistent, so the matter was remanded for fresh adjudication in the light of that prior accepted treatment. The question of law was left open.

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Issues: Whether the Tribunal was justified in reversing the order of the First Appellate Authority without considering the earlier decision in the assessee's own case on identical transactions, and whether the matter required remand for fresh adjudication.

Analysis: The dispute related to classification of the goods under competing entries in the First Schedule to the Tamil Nadu General Sales Tax Act, 1959. The assessee relied on an earlier order in its own case concerning the same nature of transactions, which had been accepted by the department and had not been challenged further. The principle of consistency required that, where the factual pattern is identical, the revenue should not take a different stand in a later year in the absence of distinguishing circumstances. The Tribunal's impugned order did not take note of the earlier binding treatment of the same issue and therefore resulted in an inconsistent approach to identical transactions.

Conclusion: The Tribunal's order could not be sustained as it overlooked the earlier decision in the assessee's own case; the matter was remanded to the Tribunal to reconsider the issue afresh in the light of that decision, and the question of law was left open.

Final Conclusion: The revision was allowed in part, with the classification issue sent back for reconsideration on the basis of the earlier accepted decision in the assessee's own case.

Ratio Decidendi: Where identical transactions have already been finally accepted in the assessee's own case, judicial discipline and consistency require the revenue and appellate authorities to follow that view unless distinguishing facts are shown.

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