Binding Board circular controls classification of STD/PCO monitors; differential duty demand was set aside.

A differential duty demand on STD/PCO monitors was challenged on the basis that the goods had been cleared under an earlier binding Board circular classifying them under Tariff Heading 90.20. A later departmental view placed the goods under Chapter 84.70, but the Tribunal treated the earlier circular as controlling and held that the Revenue could not disregard the classification on which duty had originally been paid. The differential demand was therefore held unsustainable and the impugned order was set aside.

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Issues: Whether the differential duty demand raised on STD/PCO Monitors was sustainable when the assessee had cleared the goods in accordance with an earlier binding Board circular and the later departmental view adopted a different classification.

Analysis: The appeal turned on the effect of a Board circular governing classification of the goods. The earlier circular supported classification under Tariff Heading 90.20, while a subsequent Board view placed the goods under Chapter 84.70. The Tribunal held that the binding nature of a Board circular was well settled and that the Revenue could not ignore the circular under which duty had originally been paid.

Conclusion: The differential duty demand was not sustainable and the impugned order was set aside.

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