Binding Larger Bench precedent governs exemption eligibility for furnace lining materials despite a pending High Court reference.

Burnt Dolomite Reming Mass and Tar Dolomite Reming Mass used for furnace lining and maintenance were held entitled to Notification No. 217/86-C.E. The Tribunal applied its earlier Larger Bench ruling, treating the notification's exclusion clause as pari materia with the corresponding Modvat exclusion clause, and followed that binding precedent. It held that a coordinate Bench could not depart from the Larger Bench decision merely because a similar question was pending before the High Court. On that basis, the Revenue's challenge failed and the order in favour of the respondents was upheld.

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Issues: Whether Burnt Dolomite Reming Mass and Tar Dolomite Reming Mass used for lining of furnaces for maintenance were entitled to the benefit of Notification No. 217/86-C.E.

Analysis: The claim was supported by an earlier five-Member Bench decision holding the products entitled to Modvat credit. The exclusion clause in Notification No. 217/86-C.E. was treated as pari materia with the exclusion clause in the Modvat provision, and the Tribunal considered itself bound by its Larger Bench decision. The pendency of a reference on a similar question before the High Court did not justify a different view in the present appeals.

Conclusion: The products were entitled to the benefit of Notification No. 217/86-C.E., and the Revenue's challenge failed.

Final Conclusion: The order in the respondents' favour was upheld and the Revenue's appeals were rejected.

Ratio Decidendi: Where a Larger Bench decision squarely covers the issue, a coordinate Bench is bound to follow it notwithstanding a pending reference on a similar question before a High Court.

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