Collector Of Central Excise, Vadodara vs Dhiren Chemical Industries

The Supreme Court dismissed the appeals, affirming the interpretation of the phrase 'on which the appropriate amount of duty of excise has already been paid' as established in Collector of Central Excise, Vadodara v. Dhiren Chemical Industries, 2002 (139) E.L.T. 3(S.C.). The Court held that despite the Constitution Bench's interpretation favoring the Revenue, circulars from the Central Board of Excise and Customs providing a different interpretation are binding. Consequently, the appeals were dismissed without costs.