Classification settled by the Tribunal cannot be overridden by a contrary Section 37B direction; refund relief followed.

Section 37B directions could not override a classification already settled by the Tribunal for Di-Calcium Phosphate animal feed grade under Heading 23.02 and sub-heading 2302.00. The departmental instruction, to the extent it conflicted with that settled classification, was without authority. On that basis, the assessee was entitled to the relief sought, including liberty to claim refund of amounts collected without authority of law. The prior challenge to the Board's direction had also been rejected, and the Supreme Court had dismissed the matter summarily, reinforcing the settled classification position.

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Issues: Whether the Excise Board could issue directions under Section 37B of the Central Excise Act so as to override the classification settled by the Tribunal, and whether the assessee was entitled to relief and refund on that basis.

Analysis: The classification controversy concerning Di-Calcium Phosphate animal feed grade had already been resolved by the Tribunal in favour of classification under Heading 23.02 and sub-heading 2302.00 of the Central Excise Tariff Act, 1985. The subsequent departmental direction issued under Section 37B, which purported to run contrary to that decision, was held to be without authority. The earlier view had also been affirmed when the challenge to the Board's direction was rejected and the Supreme Court dismissed the matter summarily.

Conclusion: The Board could not issue directions contrary to the Tribunal's classification decision, and the assessee was entitled to the relief claimed, including liberty to seek refund of the amount collected without authority of law.

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