Conflicting classification rulings required Larger Bench reference before exemption eligibility could be finally determined.

Conflicting coordinate decisions on the classification of the product and its eligibility for exemption prevented final disposal by the same bench. The Members examined whether earlier rulings could be treated as sub silentio, per incuriam, or affected by merger, but found the inconsistency on the core classification issue decisive. The matter was therefore referred to the Hon'ble President for constitution of a Larger Bench to resolve the classification and exemption questions, and no final adjudication on entitlement was made at that stage.

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Issues: Whether the appeal group could be finally disposed of on the merits or whether the conflicting coordinate decisions required reference to a Larger Bench for resolution of the classification and exemption questions.

Analysis: The order records that earlier decisions on the same product had taken different views. One view supported classification under the residuary item and indicated that the exemption issue had not been conclusively dealt with, while another later view treated the product as a surgical dressing without medicinal or therapeutic value. The Members examined the nature of the earlier rulings, the effect of the doctrine of merger, and whether the later order could be treated as sub silentio or per incuriam. In the majority view, the existence of conflicting decisions on the core classification issue made it inappropriate to conclude the matter finally on the existing record and required consideration by a Larger Bench.

Conclusion: The matter was referred to the Hon'ble President for constitution of a Larger Bench to resolve the classification issue and the product's eligibility to exemption.

Final Conclusion: No final adjudication on the classification or exemption entitlement was made at this stage, and the dispute was sent for determination by a Larger Bench.

Ratio Decidendi: Where conflicting coordinate decisions exist on the same classification question, the appropriate course is reference to a Larger Bench rather than a final merits determination by the same bench.

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