Binding Supreme Court ruling defeats exemption claim for Flock Paper under the relevant excise notification

Flock Paper was held ineligible for exemption under Notification No. 68/76-C.E. because the earlier Tribunal view relied on by the assessee had been reversed by the Supreme Court in a decision concerning the same goods, the same notification, and the relevant period. Once the binding Supreme Court ruling was pointed out, the assessee accepted that the earlier Tribunal decision no longer supported its claim. The governing principle is that a later Supreme Court decision on the identical exemption issue overrides the contrary Tribunal view, and the exemption claim must fail.

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Issues: Whether Flock Paper was eligible for exemption under Notification No. 68/76-C.E. dated 16-03-1976.

Analysis: The claim for exemption was examined in light of an earlier Tribunal view that had been relied upon by the appellant. The Bench noted that the earlier view had since been reversed by the Supreme Court in a decision concerning the same goods and the same notification for the relevant period. Once that binding decision was brought to notice, the appellant accepted that the Tribunal decision no longer supported its case.

Conclusion: The assessee was not entitled to exemption under Notification No. 68/76-C.E. dated 16-03-1976.

Final Conclusion: The appeal failed because the governing Supreme Court ruling had already settled the exemption issue against the claim.

Ratio Decidendi: Where a later Supreme Court decision has reversed the Tribunal view on the same goods and the same exemption notification for the relevant period, the binding Supreme Court ruling governs and the exemption claim must fail.

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