2007 (3) TMI 643 - AT - Central Excise

Summary

Issues involved: Appeal against Order-in-Appeal setting aside Order-in-Original dropping proceedings initiated under show cause notice dated 1-5-1992.

Summary:

Issue 1: Applicability of Section 11B to provisional assessment

The appellant, a manufacturer of detergent powder, opted for provisional assessment of clearances. The Revenue issued show cause notices for recovery of excess duty paid during certain months. The adjudicating authority dropped the proceedings, but the Commissioner (Appeals) held that Section 11B would be applicable. The appellant argued that Section 11B was amended in 1999 and cannot be applied retroactively to provisional assessments finalized in 1991. Additionally, the appellant contended that show cause notices were not appropriate for finalized assessments. The Tribunal found that a similar issue had been finalized in favor of the appellant in a previous case, and as the Revenue did not challenge that decision, the impugned order was set aside.

Issue 2: Finality of previous decision

The Tribunal emphasized that when an issue has attained finality between parties in a previous case, the Revenue cannot raise the same issue again against the assessee. Citing a Supreme Court decision, the Tribunal held that the impugned order, which contradicted the previous final decision in favor of the appellant, could not stand. Therefore, the appeal was allowed based on the principle of finality between the parties.

This summary highlights the key arguments and findings related to the issues involved in the judgment.