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2006 (12) TMI 342 - AT - Central ExciseCenvat/Modvat - Use of oxygen and acetylene gases - repairs of various parts of machinery and restructuring and refurbishing - capital goods - Judicial discipline - Binding precedent - Commissioner (Appeals) held that the issue was no longer res integra since the Larger Bench of the Tribunal by its decision in Jaypee Rewa Plant v. CCE [2001 (8) TMI 1332 - SUPREME COURT], held that credit would not be admissible where these gases have been used for the repairs and maintenance of plant and machinery. While upholding the decision of the adjudicating authority in both the matters denying Cenvat credit in respect of the use of these gases by the appellant, the appellate Commissioner set aside the penalties imposed on the appellant. HELD THAT:- It is clear that the Division Bench in India Sugars [2005 (11) TMI 161 - CESTAT, BANGALORE] could not have taken upon itself to consider the question as to whether the earlier decision of the Larger Bench in Jaypee Rewa [2003 (3) TMI 145 - CEGAT, NEW DELHI] needed to be reconsidered and revised, in view of the decision of the Hon’ble Supreme Court in Lala Shri Bhagwan and another v. Ram Chand and another [1965 (3) TMI 72 - SUPREME COURT], in which it was held that: “It is hardly necessary to emphasise that consideration of judicial propriety and decorum require that if a learned single Judge hearing a matter is inclined to take the view that the earlier decision of the High Court whether of a Division Bench or of a single Judge, needs to be re-considered, he should not embark upon that enquiry sitting as a single Judge, but should refer the matter to a Division Bench or, in a proper case, place the relevant papers before the Chief Justice to enable him to constitute a Larger Bench to examine the question. That is the proper and traditional way to deal with such matters and it is founded on healthy principles of judicial decorum and propriety. It is to be regretted that the learned Single Judge departed from this traditional way in the present case and chose to examine the question himself.” Faulty attitudes in a decision-making process can destroy the institutions. Decisions can be corrected only by the superior forums or on review, but when attitudes become faulty the very basis of judicial institutions would get shaken, leading to utter chaos and confusion. Therefore, this court is bound to follow the Larger Bench decision in preference to the decision of the Division Bench, which could not have declared a Larger Bench decision as overruled. Only a Bench larger than the said Larger Bench deciding Jaypee Rewa Plant (supra) could have declared that decision to have been either expressly or impliedly overruled by a decision of a higher forum, or itself overruled it. Therefore, none of the contentions raised on behalf of the appellant warrant any interference with the impugned order of the Commissioner (Appeals), which has rightly followed the decision of the Larger Bench in Jaypee Rewa Plant (supra), in disallowing the Cenvat credit to the appellants in respect of use of oxygen gas and acetylene gas. Both the appeals are, therefore, dismissed.
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