Tribunal reliance on stayed precedent cannot be final when Supreme Court review is pending

The appeal under the Central Excise Act concerned whether a Tribunal order could stand when its legal basis was under challenge before the Supreme Court and stayed. The Tribunal had relied on the Gujarat High Court decision striking down part of Rule 8(3A) of the Central Excise Rules, 1944. As that judgment had been carried in appeal and stayed, the Court considered it proper to await the Supreme Court's final decision before conclusively deciding the dispute. The Tribunal's order was set aside and the matter restored to its file to remain pending until the higher court proceedings were concluded.

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Issues: Whether the Tribunal's order could be sustained when the legal foundation for the assessee's claim was under challenge before the Supreme Court and stayed, and whether the matter should be kept pending till final disposal of the higher court proceedings.

Analysis: The appeal arose under Section 35G of the Central Excise Act, 1944. The Tribunal had followed the Gujarat High Court decision striking down the relevant part of Rule 8(3A) of the Central Excise Rules, 1944. Since that judgment had been carried to the Supreme Court and stayed, the Court considered it appropriate that the Tribunal should await the Supreme Court's decision before deciding the dispute finally.

Conclusion: The Tribunal's order was set aside and the matter was restored to its file to be kept pending and decided after the Supreme Court's decision.

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