In Union of India v. Paras Laminated (P) Ltd. 1991 (80) Sales Tax Cases 273, the Bench of two Members of the Tribunal while determining the matter, doubted the correctness of the earlier decision of Bench of three members of the Tribunal in Bakelite Hylams Ltd. v. Collector of Customs (1986) 25 ELT 240 and directed that the case be placed before the President of the Tribunal for referring it to a larger bench. The President referred the case to a larger bench of five members. The High Court struck down the order of the Bench of five members of the tribunal, observing that the Bench of two members ought to have followed the earlier decision of the larger bench of three members and reference of the case to still larger bench was contrary to judicial
precedent and judicial discipline. The Supreme
Court while dealing with this proposition held :
In Union of India v. Paras Laminated (P) Ltd. 1991 (80) Sales Tax Cases 273, the Bench of two Members of the Tribunal while determining the matter, doubted the correctness of the earlier decision of Bench of three members of the Tribunal in Bakelite Hylams Ltd. v. Collector of Customs (1986) 25 ELT 240 and directed that the case be placed before the President of the Tribunal for referring it to a larger bench. The President referred the case to a larger bench of five members. The High Court struck down the order of the Bench of five members of the tribunal, observing that the Bench of two members ought to have followed the earlier decision of the larger bench of three members and reference of the case to still larger bench was contrary to judicial
precedent and judicial discipline. The Supreme
Court while dealing with this proposition held :