Reclassification of goods and differential duty recovery under excise law sent to a Larger Bench for consideration.

Reclassification of goods raised the question whether differential duty could be recovered as short levy for a period preceding the show cause notice under Section 11A of the Central Excise Act, 1944. The matter concerned the permissible scope of duty recovery after reclassification and the treatment of pre-notice periods for differential duty demands. The appeal was not finally decided and was directed to be placed before the Hon'ble CJI for orders on reference to a Larger Bench.

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Issues: Whether, on reclassification of goods, duty can be recovered by treating the differential duty as short levy for a period prior to the show cause notice under Section 11A of the Central Excise Act, 1944.

Outcome: The appeal was not finally decided and the matter was directed to be placed before the Hon'ble CJI for orders on reference to a Larger Bench.

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