Green Pepper in Brine excluded from spice levy where notification and prior tribunal view governed the classification.

Cess under the Spices Board Act, 1986 was held not leviable on Green Pepper in Brine because the Tribunal treated it as outside the scope of "spice" for levy purposes. The Tribunal relied on its earlier binding view on the same question and on Notification No. S.O. 771(E) dated 16 October 1992, which added "Green Pepper in Brine" to the relevant schedule under the export development legislation. On that basis, Green Pepper in Brine could not be subjected to cess, and the issue was decided against the Revenue.

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Issues: Whether cess under Section 3 of the Spices Board Act, 1986 was leviable on Green Pepper in Brine.

Analysis: The Tribunal followed its earlier final order on the same question and also noticed Notification No. S.O. 771(E) dated 16th October, 1992, by which the heading "Green Pepper in Brine" was added to the Schedule under the relevant export development legislation. On that basis, the Tribunal held that Green Pepper in Brine could not be treated as spice for the purpose of levy of cess.

Conclusion: Cess was not leviable on Green Pepper in Brine and the issue was decided against the Revenue.

Ratio Decidendi: Where the relevant notification and prior binding tribunal view establish that Green Pepper in Brine is not to be treated as a spice, cess under Section 3 of the Spices Board Act, 1986 cannot be levied.

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