2004 (5) TMI 511 - AT - Central Excise

Summary

Issues: Classification of lean gas under Tariff Heading 2711.29 or 2711.21

Analysis:
1. The Tribunal considered whether lean gas should be classified under Tariff Heading 2711.29 as contended by the Revenue or under 2711.21 as argued by the appellants. The Tribunal referred to a previous decision in Oil India Ltd. v. CCE where it was held that lean gas, being natural gas, falls under Heading 2711.21 and not 2711.29.

2. The Tribunal noted that the Revenue had appealed the Oil India Ltd. decision to the Supreme Court, which was dismissed on both delay and merits grounds. The appellants cited an order in their own case where the Commissioner followed the Tribunal's decision, which was upheld by the Supreme Court and accepted by the Board of Central Excise, Customs.

3. The Tribunal criticized the Commissioner for not following the settled legal position established by the Tribunal and affirmed by the Supreme Court. It emphasized that the refusal to adhere to established legal principles would lead to unnecessary harassment of assessees and an increase in avoidable appeals, burdening the Tribunal.

4. Consequently, the Tribunal set aside the impugned order and allowed the appeal in favor of the appellants. The Tribunal directed that a copy of the order be sent to the Chairman, CBEC to ensure awareness and compliance with the decision.