By TIOL News Service

NEW DELHI, APRIL 13, 2017: THIS appeal arises out of the final order dated 29.10.2014 reported AS - 2015-TIOL-66-CESTAT-MUM passed by the Customs, Excise & Service Tax Appellate Tribunal, West Zonal Bench, Mumbai.

The issue before the Tribunal was with regard to classification of Imaging Plates, IP Cassettes and FCR Capsula .

There was an order dated 20.02.2013 of the same Tribunal in the case of M/s. Jindal Photo India Pvt. Ltd. Reported in - 2013-TIOL-2200-CESTAT-MUM holding that Imaging Plates and IP Cassettes to be classifiable under Chapter 90 CTH 90189099 and, therefore, entitled to the benefit of notification No.21 /2002 dated 01.03.2002.

In the impugned order, the Tribunal did not accept the decision of the coordinate Bench in Jindal Photo India Pvt. Ltd. and took the view that the two items were more appropriately classifiable under Chapter 37 CTH 370110.

As benefit under the notification No.21 /2002-Cus dated 01.03.2002 was allowable in respect of Imaging Plates and IP Cassettes even if the same is to be classified under Chapter 37, the Tribunal, by the impugned order, held that the said two items will be eligible to the benefit of notification No.21 /2002 dated 01.03.2002.

The Supreme Court observed,

If the learned Tribunal was not in a position to accept the correctness of the decision of a coordinate Bench of the Tribunal, the correct course of action would have been to seek the views of a larger Bench. Judicial discipline demanded the quasi judicial authority i.e. the learned Tribunal to act in such a manner. That apart, the learned Tribunal seems to have found a case which was not even urged by any of the parties before it, namely, that Imaging Plates and IP Cassettes merit classification under Chapter 37.

The order of the Tribunal is set aside and the appeal is allowed by way of remand.

The Tribunal is requested to decide the matter as expeditiously as possible. All contentions available to the parties are left open.

(See 2017-TIOL-167-SC-CUS)