Civil Appeal No. 3304 of 1988. Case: Collector of Central Excise, Baroda Vs Cotspun Ltd.. Supreme Court (India)

Case NumberCivil Appeal No. 3304 of 1988
JudgesJ.S. Verma, CJI and B.N. Kirpal, J.
IssueCentral Excise Act, 1944 - Section 11A; Central Excise Rules, 1944 - Rule 173B
Citation1998 (99) ELT 24 (SC)
Judgement DateJuly 30, 1997
CourtSupreme Court (India)


  1. The only question involved for decision in this appeal pertains to the effective date from which the reclassification made becomes effective for the purpose of recovery of the duty. There is no controversy that the reclassification is effective prospectively as consistently held by this Court. The other aspect, however, is about the date from which, on reclassification, the duty can be recovered, i.e., whether it can be recovered by treating it as short levy under Section 11A of the Act for a period of six months prior to the date of show cause notice which may extend to a date prior to the date of proposal for the reclassification.

  2. In view of the fact that the respondent-assessee is unrepresented, we requested Shri V. Sridharan to appear as amicus curiae. The learned amicus curiae has, after studying the point, placed before us a catena of decisions of this Court, mostly by 2-Judge Benches and two decisions by 3-Judge Benches. The two decisions rendered by 3-Judge Benches are Collector of Central Excise v. Indian Oxygen Ltd., 1991 (51) ELT A36 and Ballarpur Industries Ltd. v. Asstt. Collector of Customs & C. Ex., 1995 (76) ELT 499. The view taken in Indian Oxygen (supra) is in favour of the assessee...

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