Final classification cannot be reopened without a material change in facts or tariff provisions.

Classification of Emdilith and Mahacol under Heading 3506.00, having been finally determined by an earlier appellate order and accepted without challenge, could not be reopened by the Commissioner (Appeals). The earlier decision had relied on the chemical test report, and there was no material change in manufacture or tariff provisions to justify a fresh classification exercise. On that basis, the later contrary view was unsustainable and the settled classification continued to bind the parties.

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Issues: (i) Whether the Commissioner (Appeals) could reopen the classification of Emdilith and Mahacol after the classification had already been finally settled by an earlier appellate order.

Issue (i): Whether the Commissioner (Appeals) could reopen the classification of Emdilith and Mahacol after the classification had already been finally settled by an earlier appellate order.

Analysis: The classification of the two products under Heading 3506.00 had been originally decided in 1991, sustained in appeal in 1992, and accepted by the assessee without challenge. The earlier decision had taken into account the chemical test report, and there was no evidence of any subsequent change in manufacture or tariff entry that would justify a fresh look. In these circumstances, the later classification declarations had to be considered in the light of the binding earlier appellate order, and the issue could not be reopened.

Conclusion: The Commissioner (Appeals) could not reopen the settled classification of Emdilith and Mahacol, and the Revenue's view prevailed.

Final Conclusion: The appeal succeeded because the earlier final classification of the two products remained binding and the subsequent contrary decision was unsustainable.

Ratio Decidendi: A classification finally determined by an unchallenged appellate order cannot be reopened in the absence of a material change in facts or tariff provisions.

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