Validity of amended excise levy on intermediate goods upheld, with retrospective operation of the finance amendment sustained.

The amended Central Excise Rules, 1944, and Section 51 of the Finance Act, 1982 were treated as valid because the Supreme Court had already upheld the levy on intermediate goods produced in a continuous manufacturing process and sustained the retrospective operation of the amendment. On that footing, the consequential excise orders and demand were regarded as having statutory authority, and the challenge to their validity failed.

---

---

Issues: Whether Rule 9 of the Central Excise Rules, 1944, as amended, and Section 51 of the Finance Act, 1982 were valid, and whether the consequential excise orders and demand were sustainable.

Analysis: The challenge to the amended excise provisions had already been concluded by the Supreme Court in the earlier decision relied upon by the Court. That decision upheld the validity of the amended rules treating intermediate goods produced in a continuous manufacturing process as dutiable, and also sustained the retrospective effect given by the Finance Act, 1982. On that basis, the impugned orders passed under those provisions were treated as having been made under valid statutory authority.

Conclusion: The challenge failed and the writ petition was rejected.

---