M/S. RAINBOW INDUSTRIES (P) LTD. versus THE COLLECTOR OF CENTRAL EXCISE, VADODARA

M/S. RAINBOW INDUSTRIES (P) LTD. versus THE COLLECTOR OF CENTRAL EXCISE, VADODARA

Reclassification by the Department is valid but must apply only prospectively from the date the show-cause notice is issued, not from date of original submission of price list, if no evasion or change in law.

Parties
Appellant: M/S. Rainbow Industries (P) Ltd.; Respondent: The Collector of Central Excise, Vadodara
Jurisdiction
India
Judgment Date
04 October 1994
Procedural Posture
Civil Appeal / Appeal From Judgment and Order Dated 21.11.84 of the Central Customs Excise and Gold (control) Appellate Tribunal, New Delhi
Outcome
Appeal allowed in part.
Legal Topics
Central Excise, Reclassification, Price Lists, Sales to Related Persons
Tax Law Central Excise Reclassification Price Lists Sales to Related Persons

Case Brief

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Parties

M/S. Rainbow Industries (P) Ltd.

Appellant

The Collector of Central Excise, Vadodara

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment and Order Dated 21.11.84 of the Central Customs Excise and Gold (control) Appellate Tribunal, New Delhi

Legal Issues

  1. 1 Whether reclassification and revised assessable value by department after acceptance of price list is prospective or retrospective

Ratio Decidendi

Reclassification by the Department is valid but must apply only prospectively from the date the show-cause notice is issued, not from date of original submission of price list, if no evasion or change in law.

Court Disposition

Appeal allowed in part.

Orders

  • Appellant liable to pay duty on dye-stuffs manufactured as calculated by the Department from 16th October, 1976, date of show-cause notice.
  • Parties shall bear their own costs.