RAINBOW INDUSTRIES (P) LTD. vs COLLECTOR OF CENTRAL EXCISE, VADODARA

The Supreme Court addressed the issue of whether the classification and price list accepted by the Department under Rule 173(2) of the Central Excise Rules, 1944 should be applied prospectively or retrospectively. The Court held that once the Department accepted and acted upon the price list, any reclassification should take effect only from the date of the show-cause notice issued under Section 11A of the Central Excises & Salt Act, 1944, due to the absence of any amendment in law or judicial pronouncement. The appeal was allowed in part, affirming the appellant's liability to pay duty calculated from 16th October.