Binding appellate findings in remand proceedings prevent fresh excise duty demands on repaired cops treated as non-manufacture.

A superior appellate authority's finding on law remains binding in remand proceedings until set aside by a competent higher court. Here, the Tribunal had already held that repairing of cops did not amount to manufacture under Section 2(f) of the Central Excises and Salt Act, so the lower excise authority could not reopen that issue on remand. On that basis, duty could not be demanded on the repaired cops, and a show cause notice issued on the contrary premise was improper. The subordinate authority was required to give effect to the earlier legal finding, not treat the matter as still open.

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Issues: Whether the finding that repairing of cops does not amount to manufacture was binding on the lower excise authority in the remand proceedings, and whether duty could be demanded or a show cause notice issued on the repaired cops pending re-adjudication.

Analysis: The Tribunal had earlier set aside the Collector's order and remitted the matter for re-adjudication in the light of its observations and directions, including the specific finding that repairing of cops did not amount to manufacture within the meaning of Section 2(f) of the Central Excises and Salt Act. A lower authority is bound to give effect to the Tribunal's finding of law until it is set aside by a competent superior court, and cannot treat the issue as still open merely because the matter was remanded or a further challenge was contemplated. On that basis, demand of duty on the repaired cops, including their subsequent removal, was not justified, and issuance of the show cause notice on that premise was also improper.

Conclusion: The finding on non-excisability of repaired cops was binding on the Collector, and duty could not be demanded on that basis or the notice sustained.

Ratio Decidendi: Findings of law recorded by a superior appellate authority bind the subordinate authority in remand proceedings until overturned by a competent higher court, and the subordinate authority cannot disregard them by treating the issue as open.

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