Excise duty by price slabs upheld where prior High Court precedent supported the notification-based levy structure.

A notification fixing excise duty on cigarettes by reference to notified price slabs was challenged as inconsistent with central excise valuation provisions. The Tribunal noted that the Bombay High Court had already upheld the levy structure and held that judicial propriety required following that precedent rather than taking a contrary view while it remained operative. On that basis, the notification-based valuation and levy were treated as legally effective, and the assessee's challenge failed.

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Issues: (i) Whether the notification fixing excise duty on cigarettes by reference to the notified price slabs could be struck down as being inconsistent with the valuation provisions under the central excise law.

Issue (i): Whether the notification fixing excise duty on cigarettes by reference to the notified price slabs could be struck down as being inconsistent with the valuation provisions under the central excise law.

Analysis: The challenge to the notification was considered in the light of the prior decision of the Bombay High Court upholding the levy structure. The Tribunal also noted that judicial propriety required following the High Court view and that authorities under the excise law should not take a contrary view merely because the matter was under further challenge. On that basis, the notification-based levy was treated as having legal effect and the lower authorities' approach was not found to be erroneous.

Conclusion: The challenge failed and the notification-based valuation and levy were upheld against the assessee.

Ratio Decidendi: Where a High Court has already upheld the excise levy mechanism, subordinate authorities and the Tribunal should follow that view on grounds of judicial propriety and binding precedent until it is set aside.

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