Tribunal has judicial power and can use incidental powers; Section 129-C allows referring cases to larger Bench when conflicts arise

SC held the Tribunal is a judicial body with the express and necessary incidental powers to make its statutory jurisdiction effective. The President's power under Section 129-C to constitute Benches includes the implied authority to refer matters to a larger Bench where members of a Bench cannot decide due to conflict with earlier decisions. A two-member Bench acted within power in framing points for clarification and the President properly constituted a larger Bench. The High Court's order setting aside those steps was set aside and the appeal allowed.

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Issues:
Appeal against setting aside of Tribunal's orders by High Court - Doubt on correctness of earlier decision - Reference to larger Bench - Jurisdiction of Tribunal to refer cases to larger Bench - Interpretation of Customs Act, 1962 - Powers and functions of Tribunal - President's authority to refer cases to larger Bench.

Analysis:
The appeal before the Supreme Court arose from the Delhi High Court's judgment setting aside two orders of the Customs, Excise and Gold (Control) Appellate Tribunal. The Tribunal's Bench of two members doubted the correctness of an earlier decision and referred the case to the President for a larger Bench. The High Court struck down these orders, citing the need to follow precedent and judicial discipline.

In the Bakelite Hylam case, a three-member Bench classified goods under Tariff Item 84.60, but Customs authorities classified them differently. The importer appealed, relying on Bakelite Hylam's decision. The Tribunal's actions were challenged, leading to the High Court's decision.

The Union of India argued that the Tribunal has the power to constitute larger Benches under Section 129 C of the Customs Act, 1962, to resolve conflicts. They contended that restricting the Tribunal's jurisdiction would hinder legal growth and evolution.

The importer's counsel argued that the Tribunal's powers are limited to statutory provisions and do not include the authority to refer cases to larger Benches based on doubts about earlier decisions. They emphasized the need to follow precedent and leave corrections to higher courts.

The Tribunal's powers, as outlined in Section 129 of the Act, include the authority to regulate its procedure and refer cases in case of differing opinions. The Tribunal functions as a court within its jurisdiction, with powers granted by statute and implied powers necessary for effective execution.

While a Bench should not disregard earlier decisions lightly, judicial freedom to doubt correctness is essential. The President's power to refer cases to larger Benches is crucial for effective functioning, even if not explicitly stated for doubts on earlier decisions.

The Supreme Court held that the Tribunal acted within its powers by referring the case to a larger Bench. The Court set aside the High Court's judgment, allowing the appeal with costs.

In conclusion, the judgment clarifies the Tribunal's authority to refer cases to larger Benches when doubts arise on earlier decisions, ensuring effective judicial functioning within statutory limits.

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