Commissioner Vs Richa Particle Board Pvt. Ltd (Gujarat High Court)
The Tax Appeal was filed under Section 35G of the Central Excise Act, 1944 challenging the Tribunal’s order dated 21.08.2023 in Excise Appeal No. 11829 of 2013. The appellant argued that the matter should be decided in line with the Gujarat High Court judgment in Darshan Boardlam Ltd. v. Union of India, reported in 2013 (287) E.L.T. 401 (Guj). Upon examining the case record, the High Court noted that the issue raised in the present appeal is directly covered by the earlier decision in Darshan Boardlam Ltd. The Tribunal had also relied entirely on that judgment while delivering its order.
The Court observed that no material was placed before it to suggest that the Darshan Boardlam Ltd. ruling had been stayed or set aside by the Supreme Court. The Tribunal had earlier held that pre-laminated bagasse board qualifies for exemption under Notification No. 6/2006-CE (Sr. 82) dated 01.03.2006, relying on the same High Court judgment. The Tribunal further held that the pendency of the Revenue’s appeal before the Supreme Court does not dilute the binding nature of the High Court ruling, in adherence to judicial discipline.
The High Court agreed with the Tribunal’s reasoning and found no justification to depart from the coordinate bench’s earlier decision. Since the binding precedent in Darshan Boardlam Ltd. remained intact and had not been overturned or stayed, the Court confirmed the Tribunal’s view granting exemption under Notification No. 6/2006-CE (Sr. 82).
