Binding precedent cannot be ignored without reasons; tribunal departure from an affirmed view was quashed.

A tribunal cannot depart from an earlier view already affirmed by the Supreme Court without cogent reasons; a change in approach that ignores the binding position is unsustainable. Here, the tribunal adopted a view contrary to its earlier decisions, including Watts Electronics Pvt. Ltd. and Shree Cables & Conductors Ltd., without discussing the binding effect of the Supreme Court's confirmation. The Gujarat High Court therefore set aside and quashed the tribunal's order, and the Commissioner (Appeals) order was allowed to operate.

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Issues: Whether the Tribunal was justified in departing from its earlier view, already affirmed by the Supreme Court, without assigning reasons, and whether its order was liable to be quashed.

Analysis: The Tribunal had taken a view contrary to its earlier decisions in Watts Electronics Pvt. Ltd. and Shree Cables & Conductors Ltd., though the latter view had already been confirmed by the Supreme Court. Once a view has been adopted in earlier decisions and further affirmed by the Supreme Court, departure from that view requires cogent reasons. A change in approach without discussion of the earlier binding position could not be sustained.

Conclusion: The Tribunal's order was set aside and quashed, and the order of the Commissioner (Appeals) was allowed to operate.

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