Binding Larger Bench precedent on spent palladium catalyst under Modvat secured relief for the assessee in the later appeal.

Spent palladium catalyst cleared for recovery of palladium chloride under the Modvat scheme was treated as a dispute already resolved in favour of the assessee by a prior Larger Bench decision. The Tribunal followed that binding view and did not adopt any contrary interpretation on whether the spent catalyst could be treated as waste under Rule 57F(2). As a result, the assessee received relief, the impugned orders were set aside, and consequential relief followed according to law.

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Issues: Whether spent palladium catalyst cleared for recovery of palladium chloride under Rule 57F(2) could be treated as waste and whether the assessee was entitled to relief in view of the prior Larger Bench on the same issue.

Analysis: The appeal concerned clearances of spent palladium catalyst arising after use of palladium chloride as a catalyst in the course of manufacture under the Modvat scheme. The Tribunal noted that the very same appellants had already obtained a favourable decision from a Larger Bench on the identical controversy. In view of that binding resolution of the issue, no independent contrary view was taken in the present matter.

Conclusion: The issue was answered in favour of the assessee; the spent palladium catalyst dispute did not survive against the appellant.

Final Conclusion: The appeal succeeded and the impugned orders were set aside with consequential relief according to law.

Ratio Decidendi: Where an identical issue has already been decided in favour of the assessee by a Larger Bench, the Tribunal will follow that and grant relief in the later appeal.

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