Retrospective tax amendment applies to pending refund dispute, so duty liability must follow the amended statutory position.

A retrospective amendment in the Finance Act, 1982 was held to apply to a pending refund dispute because the challenge to the refund had already been instituted within limitation and had not attained finality when the amended law came into force. The amendment therefore operated on an open controversy rather than reopening a concluded matter, and the objection that the department lacked power to disturb a final refund was rejected. The assessable value and duty liability were required to be determined under the retrospective statutory position, and the Revenue's demand was upheld.

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Issues: Whether the retrospective amendment made by the Finance Act, 1982 could govern the pending refund demand and justify recovery of the amount alleged to have been erroneously refunded.

Analysis: The proceeding challenging the refund was already instituted within limitation and was still pending when the Finance Act, 1982 came into force with retrospective effect. In such a situation, the amendment operated on the pending controversy itself and there was no reopening of a concluded matter. The contention that the department lacked power to reopen a final refund therefore did not apply, because the refund question had not attained finality when the amended law became effective. On that basis, the assessable value and duty liability had to be determined in accordance with the retrospective statutory position.

Conclusion: The issue was decided against the appellant and in favour of the Revenue; the demand based on the retrospective amendment was upheld.

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