Exemption for spent solvents from a 100% EOU upheld where the issue was already settled by binding precedent.

Spent solvents cleared by a 100% Export Oriented Unit into the Domestic Tariff Area were treated as covered by Notification No. 23/2003-CE, because the classification and exemption issue had already been settled by earlier binding appellate decisions and later applied in the assessee's own case. Judicial discipline required the Tribunal to follow that settled view rather than reopen the issue. On that basis, the exemption claim was accepted and the duty demand was not sustainable, with consequential relief granted to the assessee.

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Issues: Whether a 100% Export Oriented Unit was entitled to claim exemption under Notification No. 23/2003-CE for goods cleared into the Domestic Tariff Area, where the goods were characterised as waste or spent solvents generated during manufacture.

Analysis: The issue was treated as no longer open because it stood covered by the earlier decision of the Tribunal, which had been affirmed by the High Court and against which further challenge had not succeeded. The order also took note of the appellant's own later period orders, where the same classification and exemption issue had been decided in the appellant's favour. In these circumstances, judicial discipline required following the settled view that spent solvents cleared from a 100% EOU were covered by the exemption claimed.

Conclusion: The exemption claim was held to be admissible, and the demand could not be sustained against the assessee.

Final Conclusion: The appeal succeeded and the assessee obtained consequential relief in accordance with law.

Ratio Decidendi: Where a classification and exemption issue concerning spent solvents from a 100% EOU is already settled by binding higher appellate decisions and later applied in the assessee's own case, the lower appellate forum must follow that settled position and allow the exemption.

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