Classification under sub-heading 3922.90 accepted; duty demand must be recomputed and exemption issues remanded for fresh decision.

Goods were held classifiable under sub-heading 3922.90, consistent with the assessee's earlier appeal on the same product, so the classification issue was treated as settled in the assessee's favour. As a result, the consequential duty demand could not stand as originally framed and had to be recomputed on that basis. The plea for exemption under Notification No. 132/86-C.E. and the question of small scale exemption were not finally decided and were remitted to the appellate authority for fresh examination after hearing the assessee.

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Issues: Whether the goods were classifiable under sub-heading 3922.90, and whether the consequential duty demand required reworking in light of that classification.

Analysis: The classification issue had already been settled in the assessee's own earlier appeal, where the goods were held classifiable under sub-heading 3922.90. In view of that binding earlier determination, the existing demand could not stand as framed and had to be recomputed. The plea regarding exemption under Notification No. 132/86-C.E. and the question of small scale exemption were left for the appellate authority to examine afresh on remand after giving the assessee an opportunity of hearing.

Conclusion: The classification was accepted in favour of the assessee, and the matter was remanded for fresh consideration of the consequential demand and remaining exemption-related issues.

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