Retrospective application of a Board classification order under central excise was rejected for a prior-period dispute.

A Board order issued under Section 37B of the Central Excise Act cannot be applied retrospectively to determine classification for a prior period where the dispute concerns an original classification list. The Tribunal relied on its earlier decisions and Supreme Court authority to hold that the department could not base the classification solely on a later Board order. The goods were therefore correctly classifiable under Heading 85.29 for the disputed period, in favour of the assessee.

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Issues: Whether the Board's order issued under Section 37B of the Central Excise Act could operate retrospectively to govern the classification of the subject goods for the disputed period.

Analysis: The classification adopted by the department was founded entirely on the Board's order. The dispute concerned an original classification list and related to a period preceding the Board's order. An order issued under Section 37B cannot be given retrospective effect in such a situation, and the Tribunal relied on its earlier decisions and the Supreme Court's ratio supporting that principle.

Conclusion: The Board's order could not be applied retrospectively, and the goods were correctly classifiable under Heading 85.29 for the period in dispute, in favour of the assessee.

Ratio Decidendi: A Board order issued under Section 37B of the Central Excise Act does not have retrospective effect for an original classification dispute relating to a prior period.

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