1999 (6) TMI 299 - AT - Central Excise

Summary

Issues: Classification of skybags under Central Excise Tariff headings

Issue 1: Classification of goods under Central Excise Tariff headings
The appeal challenged the Order-in-Original of the Collector of Central Excise, Aurangabad, which classified skybags under different Tariff Headings. The appellants had initially classified the goods under Chapter sub-heading 4201.90, but the Department sought to reclassify them under 4201.10, leading to a Show Cause Notice alleging suppression of facts and duty demand. The appellants argued that the matter had been previously decided in their favor by the Commissioner (Appeals) and CEGAT, making the Collector's reclassification invalid.

Analysis:
The appellants contended that the Collector's reclassification was not sustainable in law as the issue had been previously settled by a specific judicial decision. They argued that judicial discipline required consistency unless a clear distinction existed. The Collector himself acknowledged the prior classification under 4201.90 but proceeded with a new enquiry, disregarding the earlier decision. The appellants cited judicial impropriety and constructive res judicata, supported by a Madras High Court judgment emphasizing the continuity of classification unless circumstances changed. The Tribunal agreed that the Collector's actions contravened judicial discipline and set aside the impugned order, citing the Madras High Court decision as precedent.

Outcome:
The Tribunal allowed the appeal, quashing the impugned order based on the principle that a prior judicial decision on classification remains valid unless circumstances change, emphasizing the importance of consistency in classification decisions without a change in circumstances.