R. M. Sahai, J. - (1.) The short question of law that arises for consideration in this appeal directed against the judgment and order of the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi, is whether the classification and the price list accepted by the Department and acted upon, found subsequently to be erroneous, is to be applied prospectively or retrospectively.
(2.) The appellant, a manufacturer of dyestuff, filed a price list in Part IV pro forma as applicable for sales to related persons. The price list showed various includible and excludible expenses as well as assessable value as claimed by the appellant. This was approved by the Department on 6th December 1975 and the assessable value as declared was accepted. The approval was to be effective from 1st October 1975. After nearly a year the Assistant Collector issued a show cause notice requiring the appellant to show cause as to why the net assessable valaue as per the method shown in the annexure should not be revised and differential duty recovered from the appellant. The reply of the appellant was not accepted either by the Assistant Collector or by the appellate Collector or the Tribunal. In fact before the Tribunal it was conceded on behalf of the appellant that the method for determining the assessable value in the price list submitted by the appellant was not correct.
(3.) The order of the Tribunal was challenged and it was urged that the classification and the price list submitted by the appellant having been accepted and acted upon under R. 173(2) of the Central Excise Rules, 1944 the Department precluded the appellant from challenging it and, therefore, it is estopped from claiming that the appellant was guilty of suppression of facts. The learned counsel urged that the classification and the price list having been accepted and acted upon, the Department was not justified in taking proceedings under S. 11 A of the Central Excises and Salt Act, 1944. It was also urged that the Department could not have changed its opinion and the law does not contemplate issuing of any notice only because the Department felt that a particular item was dutiable in another entry. In the alternative the learned counsel submitted that where the Department has been acting upon the price list submitted by the appellant worked out in one manner but the Department claims that it should be calculated in a different manner then even if the calculation resorted to by the Department is held to be correct it should apply from the date of issue of notice and not from the date when the price list was submitted. Reliance for it was placed on the order passed by this Court in Civil Appeal Nos. 1960-61 of 1988 in the case of Collector of Central Excises, Calcutta v. Indian Oxygen Ltd., Khardah, decided on 17th March, 1989-1990 (48) ELT A24.;