1994 (10) TMI 59 - SC - Central Excise

Summary

Issues Involved: Classification and price list acceptance, retrospective or prospective application.

Classification and Price List Acceptance: The appellant, a dye-stuff manufacturer, submitted a price list approved by the Department, showing assessable value and expenses. After a year, a show cause notice was issued for revising the assessable value. The appellant's method for determining assessable value was found incorrect. The Tribunal upheld the Department's decision, stating that the Department was justified in taking action under Section 11A of the Central Excises & Salt Act, 1944, despite the price list acceptance.

Retrospective or Prospective Application: The appellant argued that once the Department accepted and acted upon the price list, reclassification should be effective from the date of the show cause notice, not from the date of submission. Citing a previous case, the appellant contended that any correct calculation by the Department should apply from the notice date. The Court held that since the appellant did not dispute the Department's correct duty calculation method, the lack of jurisdiction to initiate proceedings was not necessary to decide. The reclassification was deemed effective from the date of the show cause notice, i.e., 16th October, 1976.

Result: The appeal succeeded in part, with the appellant being held liable to pay duty on dye-stuffs manufactured based on the Department's calculation method from 16th October, 1976, the date of the show cause notice. Each party was directed to bear their own costs.