2004 (12) TMI 97 - HC - Central Excise

Summary

Issues involved:
1. Classification of the product "Shikai powder" under the Central Excise Tariff Act, 1985.
2. Whether "Shikai powder" is an excisable good.

Detailed Analysis:
Issue 1: The petitioner filed a writ petition challenging the order passed by the 2nd respondent classifying "Shikai powder" as an excisable good under Chapter heading 14 of the Central Excise Tariff Act, 1985. The petitioner, a cooperative society, argued that "Shikai" is not an excisable good as it is a natural product crushed into powder for various uses. The petitioner relied on a previous judgment of the High Court which held that similar products like "Seeakkai" do not fall under excisable commodities. The court agreed with the petitioner's argument that "Shikai powder" should not be classified as an excisable good based on the nature and usage of the product.

Issue 2: The Senior Central Government Standing Counsel for the respondents cited a judgment from the Karnataka High Court which classified "Shikai" as an excisable good. However, the High Court of Madras held that it is bound by its own precedents unless there is a judgment of the Supreme Court contrary to it. The court emphasized that the mere filing of an appeal against the judgment does not render it non-binding. Therefore, based on the earlier judgment of the learned single Judge of the High Court of Madras, the court set aside the impugned order, ruling that "Shikai" is not an excisable good as per the reasons stated in the previous judgment.

In conclusion, the High Court of Madras ruled in favor of the petitioner, declaring that "Shikai powder" is not an excisable good under the Central Excise Tariff Act, 1985, based on the interpretation of relevant legal precedents and the nature of the product.