Binding precedents — Tribunals are bound by the judgment of the High Court in absence of any contrary judgment of the jurisdictional High Court.

[C.C.E. Mumbai-III v.
Valson Dyeing Bleaching & Printing Works, 2010 (259) ELT 33 (Bom.)]

In the instance case the
adjudicating authority had determined the annual capacity of production (ACP)
and accordingly basic duty liability of the assessee was determined. The CIT(A)
upheld the said order. The assessee preferred the appeal to the Tribunal.

The respondent during the
course of hearing had relied on judgment of the Madras High Court in the case
of Beauty Dyers v. Union of India, 2004 (166) ELT 27 (Mad.) with one more
judgment in the case of respondent assessee itself, reported in 2004 (163) ELT
28. In the case of Beauty Dyers (supra), Madras High Court had declared the
Notification No. 42/98, issued in exercise of powers u/s.3A of the Act, under
which ACP was determined, as constitutionally invalid. The said judgment of
the Madras High Court was followed by the Tribunal in the case of Raji Thangam
Textiles Ltd. v. C.C.E., Coimbatore, 2006 (205) ELT 631 (Tri.). The Tribunal
in the present matter had relied upon the aforesaid judgments and set aside
the impugned orders of the Appellate as well as that of the adjudicating
authorities. The aforesaid order had given rise to the present appeal.

The question involved in
this case was whether or not the Tribunal was justified in relying upon the
judgment of the Madras High Court. The Court held that the judgment of the
Madras High Court in case of Beauty Dyers (supra) was very much binding on the
Tribunal. The Tribunal could not have brushed aside the said judgment of the
Madras High Court since there was no other judgment of the jurisdictional High
Court much less of any other High Court taking contrary view. The law on the
subject is absolutely clear, wherein various High Courts and the Apex Court
have ruled from time to time that the Tribunals are bound by the judgment of
the High Court in absence of any contrary judgment of the jurisdictional High
Court. Thus, the Tribunal was bound by the judgment of the Madras High Court.
Reliance was placed on the Division Bench judgment of the Court in the case of
CIT v. Smt. Godavaridevi Saraf, (1978) 113 ITR 589.