CANNANORE SPINNING AND WEAVING MILLS LTD. vs COLLECTOR OF CUSTOMS AND CENTRAL EXCISECOCHIN AND ORS.

The Supreme Court held that the retrospective notification defining 'hank' under the Central Excise & Salt Act, 1944, was invalid as the rule-making authority lacked the power to enact rules with retrospective effect. The Court clarified that 'hank' in commercial terms refers to a specific length of cotton yarn, and the retrospective explanation contradicted the original intent of the June 1962 notification. Consequently, the demand for excise duty against the appellant was quashed, affirming the exemption for the cotton yarn produced.