Excise show cause notices quashed where earlier Supreme Court ruling and retrospective rule amendment had already covered the levy dispute.

Show cause notices issued under excise directives were treated as covered by an earlier Supreme Court decision on levy of duty on sized yarn and by the retrospective amendment to the excise rules. The Court noted that the controversy was already substantially settled, that the notices had been issued after a long lapse of time, and that insisting on separate challenges to each notice would multiply proceedings and cause unnecessary delay and expense. On that basis, the writ petitions were allowed and the impugned notices were quashed.

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Issues: Whether the impugned show cause notices issued pursuant to the excise directives could be quashed in view of the prior decision governing levy on sized yarn and the retrospective amendment to the excise rules.

Analysis: The dispute arose from show cause notices issued on the basis of the same directives that had already been examined in earlier proceedings concerning levy of excise duty on yarn used in the manufacture of fabrics. The Court noted that the controversy was substantially covered by the earlier decision, that the notices were being issued after a long lapse of time, and that requiring the parties to pursue individual challenges to each notice would only multiply proceedings and impose unnecessary delay and expense. On that basis, the Court considered it appropriate to grant relief in the writ petitions and terminate the notices themselves.

Conclusion: The impugned show cause notices were quashed and the writ petitions were accepted.

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