GOVERNMENT OF INDIA Vs. MADRAS RUBBER FACTORY LIMITED

JUDGEMENT

(1.) Leave granted in Special Leave Petitions (C) Nos. 10108 of 1980 and 4041 of 1981.

(2.) Having enunciated the principles governing the interpretation of Section 4 of the central Excises and Salt Act, 1944 as it stood before andafter the Amendment Act XXII of 1973 in Union of India v. Bombay Tyre International Ltd. , this court (the bench comprising P. N. Bhagwati, R. S. Pathak and A. N. Sen, JJ. ) took up individual cases for disposal on 3/5/1984. The appeals and petitions were allowed under what are called "format orders" and the matters remitted to assessing authorities with a direction to quantify and redetermine the permissible deductions in accordance with the law enunciated by them in their opinion in Bombay Tyre International as clarified in Union of India v. Bombay Tyre International (P) Ltd. Certain other directions were also given with respect to the manner in which the assessing authorities were to proceed in the matter of determining the value to which it is not necessary to refer at this stage. The Assistant Collectors (Central Excise) accordingly passed orders allowing certain claims for deductions and rejecting certain others. In terms of the format orders, the assessing authorities forwarded the orders of assessment made by them to c this court along with the objections filed by the assessees in each case. The Revenue too filed certain objections. The matters were posted before a bench of this court comprising P. N. Bhagwati, C. J. and V. Khalid, J. for finally determining and deciding several issues arising between the parties. By their judgment dated 20/12/1986, the bench disposed of the appeals (Asstt. CCE v. Madras Rubber Factory Ltd. ). Contending that the said judgment is not in accord with the judgment in Bombay Tyre International the Revenue filed review petitions, which came to be allowed by a bench comprising R. S. Pathak, C. J. and L. M. Sharma, J. on 1/5/1989*. By this order, the judgment and order dated 20/12/1986 was recalled and the appeals restored to their original number. It was directed that the appeals be listed again for fresh consideration. It is pursuant to the order dated 1/5/1989 (Reported at 1989 3 SCC 238 : 1989 SCC (Tax) 393 that these appeals have now come up before us for final disposal.

(3.) Prior to the Amendment Act XXII of 1973, which came into force with effect from 1/10/1975, Section 4 read thus: