Gujarat HC upholds CESTAT order Granting Excise Exemption to Pre-Laminated Bagasse Board citing Coordinate Bench Ruling [Read Order]
The Court observed the principle of judicial discipline and stated that High Court judgments do not lose their binding nature merely because the Revenue's appeal is pending in the Supreme Court.
The Gujarat High Court upheld the Ahmedabad bench Customs, Excise & Service Tax Appellate Tribunal (CESTAT) which granted excise duty exemption to pre-laminated bagasse boards stating that binding nature of coordinate bench ruling unless it has been set aside by supreme court.
Richa Particle Board (Respondent) for whom the CESTAT granted excise duty exemption to pre-laminated bagasse boards. The tribunal relied on the Darshan Boardlam Ltd and granted the exemption.
The commissioner of Central GST and Central Excise filed an appeal against the CESTAT order. The core issue in the appeal was whether pre-laminated bagasse boards are entitled to exemption under Notification No. 6/2006-CE (Sr. No. 82) dated 01.03.2006.
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The senior counsel Mr. C. B. Gupta appeared for the appellant submitted that the present tax appeal was required to be decided in the view of the decision of the coordinate bench in the case of Darshan Boardlam Ltd V. Union of India.
The bench comprising Justice A.S. Supehia and Justice Pranav Trivedi, upheld the CESTAT order and dismissed the Revenue's appeal. The court found that the issue in the present appeal was squarely covered by the decision of a Coordinate Bench in the case of Darshan Boardlam Ltd. v. Union of India.
The Court observed that the CESTAT order, which was being appealed, had also placed exclusive reliance on the Darshan Boardlam Ltd. judgment. The court noted that the Darshan Boardlam Ltd. case had held that pre-laminated bagasse boards are entitled for exemption under the specified Notification.
The High Court observed the principle of judicial discipline and stated that High Court judgments do not lose their binding nature merely because the Revenue's appeal is pending in the Supreme Court.
The court observed that it was not pointed out that the Darshan Boardlam Ltd. judgment had been set aside or stayed by the Supreme Court. The Court observed that there was no necessity to deviate from the observations and findings recorded by the Coordinate bench. The Court upheld the CESTAT order in the light of the judgment and dismissed the Revenue's appeal.
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