Short-levy of excise valid

 The provision was amended by the Finance Act 2000 to overcome certain difficulties arising from court decisions and it had been given retrospective effect.

 The dispute in this case arose before the Customs, Excise and Gold [Control] Appellate Tribunal (Cegat) which had given a decision in favour of the revenue department in ITW Signode India Ltd vs Collector of Central Excise.

 The company appealed to the Supreme Court. The apex court set aside the Cegat decision and remitted the matter to the tribunal for reconsideration after laying down the principles.

 Section 11A deals with excise duty levied or has been short-levied or short-paid. Such short-levy or non-levy may be on the basis of any approval/assessment relating to the rate of duty on excisable goods.

 Since the Excise Act had been amended, Rule 173B should give way to Section 11A, the judgment said.

 The company also appealed against the Cegat ruling that a new product came into existence by the process adopted by it.

 By making box strappings out of duty-paid cold rolled steel strips, necessitating a different classification. Though the assistant collector agreed that the process did not amount to manufacture, later, the authorities changed their stand. Cegat also ruled that new products came into existence, attracting excise duty.

 The Supreme Court, by remitting the matter to Cegat, has asked the tribunal to review its decision.