ANDHRA RE-ROLLING WORKS, HYDERABAD vs UNION OF INDIA & ORS.

The Supreme Court held that the M.S. Rounds manufactured from untested rails by re-rolling are liable to excise duty under Item No. 26AA(i) of the First Schedule to the Central Excise and Salt Act, 1944. The Court clarified that Rule 10A of the Central Excise Rules, 1944 allows for the demand and collection of any deficiency in duty without a time limit, applicable in cases where no prior assessment was made. The appeal was dismissed, affirming the High Court's decision that the demand for excise duty was valid and not time-barred.