Accepted classification findings and settled manufacture issue confirmed relief for the assessee in bitumen dispute.

Where the Revenue had accepted an earlier final ruling on an identical classification dispute, it could not take a contrary stand against another assessee; the Tribunal's classification under Chapter Heading 59.09 and the related exemption were therefore upheld. The process of making blown grade bitumen from straight grade bitumen was also treated as concluded, because the underlying Tribunal view had later been affirmed by the Supreme Court in other appeals. The result was that the assessee retained the Tribunal's relief and the Revenue's challenge failed on both issues.

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Issues: (i) Whether the article in question was classifiable under Chapter Heading 68.07 or Chapter Heading 59.09 and entitled to exemption under the relevant notifications; (ii) Whether the process of making blown grade bitumen out of straight grade bitumen amounted to manufacture.

Issue (i): Whether the article in question was classifiable under Chapter Heading 68.07 or Chapter Heading 59.09 and entitled to exemption under the relevant notifications.

Analysis: The issue was governed by an earlier final decision of the Tribunal on the same classification question, which had not been appealed by the Revenue. The Court applied the principle that once the Revenue accepts an earlier final order on an identical issue, it cannot take a different stand against another assessee on the same question. On that basis, the classification adopted by the Tribunal under Chapter Heading 59.09 was upheld, along with the consequential exemption claim under the notifications.

Conclusion: The issue was decided in favour of the assessee and against the Revenue.

Issue (ii): Whether the process of making blown grade bitumen out of straight grade bitumen amounted to manufacture.

Analysis: The Tribunal had held that the process did not warrant the Revenue's claim, relying on its earlier decisions on the same subject. Those underlying decisions had subsequently been affirmed by the Supreme Court in a later batch of appeals, and the issue was therefore treated as concluded.

Conclusion: The issue was decided in favour of the assessee and against the Revenue.

Final Conclusion: The appeals failed in view of the affirmed classification under Chapter Heading 59.09 and the concluded finding on manufacture, leaving the assessee entitled to the relief granted by the Tribunal.

Ratio Decidendi: Where the Revenue has accepted a final decision on an identical classification issue, it cannot adopt a contrary position against another assessee on the same question; and an issue already concluded by subsequent binding authority is not open for re-agitation.

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