25 - Appeals

Yes. In the case of Standard Pencils [2005 (8) TMI 523 - CESTAT, NEW DELHI], it was held that the assessee did not challenge the above order.Thus, the decision has become final and binding between the parties. It is well settled that a wrong decision by a court having jurisdiction is as much binding between the parties as a right one and may be superseded only by appeals to higher tribunals or other procedure like review, which the law provides.

Reference case : In the case of Moti Laminates [2002 (5) TMI 56 - SUPREME COURT OF INDIA], the Supreme court dismissed SLP against the order of High court in respect of classification issue. Later in another unconnected appeal, the identical issue was raised and decision of classification of High court was reversed. It was held that since the decision of High court has become final, that is required to be obeyed and will be binding on the parties.

Finality of unappealed decisions: unchallenged jurisdictional rulings bind the parties until lawfully reversed. A jurisdictional court's unappealed ruling, even if incorrect, becomes final and binding between the parties and remains so until reversed by a higher forum or other statutory remedy; thus unchallenged classificatory or determinative decisions must be obeyed in subsequent proceedings unless lawfully set aside.