1985 (11) TMI 64 - HC - Central Excise

Summary

Issues:
1. Dispute over inclusion of packing cost in excise duty valuation.
2. Challenge to show cause notices for reassessment.
3. Interpretation of Section 47 of the Finance Act, 1982.

Analysis:
1. The petitioner, a cement manufacturer, disputed the inclusion of packing cost in excise duty valuation under Section 4(4)(d)(i) of the Central Excises and Salt Act, 1944. The petitioner filed a writ petition which was allowed, leading to a refund of duty paid on packing cost for a specific period. The Supreme Court affirmed this decision. The respondents issued show cause notices for reassessment covering the disputed period. The petitioner contended that the matter was concluded by the earlier decision, seeking to quash the notices.

2. The respondents relied on Section 47 of the Finance Act, 1982, amending Section 4(4)(d)(ii) of the Act. They argued that this amendment superseded the earlier decision, allowing them to reopen the matter for fresh assessment. The key question was whether the respondents' contention was valid. The Court held that the amendment under Section 47 did not apply to the specific issue previously decided under Section 4(4)(d)(i). As the controversy had been resolved by judicial determination up to the Supreme Court, the respondents' reliance on the amendment was deemed untenable.

3. The Court rejected the respondents' argument, stating that the amendment in Section 4(4)(d)(ii) through Section 47 of the Finance Act, 1982, did not pertain to the issue of packing cost inclusion previously decided under Section 4(4)(d)(i). Consequently, both petitions were allowed, and the show cause notices were quashed. The petitioner was awarded costs, and any security amount was to be refunded. The judgment reaffirmed the finality of the earlier decision and prevented the reopening of the matter based on the subsequent amendment.