Central excise demand on quick lime and hydrated lime fails where Supreme Court has held the products non-dutiable

A challenge to a central excise demand remained maintainable even though no appeal had been filed against the approved classification list. The controlling principle was that once the Supreme Court had held quick lime and hydrated lime to be not chargeable to duty, no excise demand could survive on those products. The demand was therefore unsustainable and the confirmation of central excise duty was set aside.

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Issues: Whether the appellants could challenge the excisability of quick lime and hydrated lime while contesting the duty demand, despite no appeal having been filed against the approved classification list; and whether duty was leviable on these products.

Analysis: The approved classification list did not preclude the appellants from disputing the demand in the present proceedings. The decisive point was that the product in question had already been held by the Supreme Court to be not chargeable to duty. Once the highest court had settled the non-dutiability of quick lime and hydrated lime, no duty demand could survive against the appellants on those products.

Conclusion: The challenge to the demand was maintainable, and the duty demand on quick lime and hydrated lime was unsustainable.

Final Conclusion: All the appeals were allowed and the confirmation of central excise duty on the products was set aside.

Ratio Decidendi: Where the Supreme Court has held a product to be not chargeable to duty, a demand of central excise duty on that product cannot be sustained, and the assessee may contest such demand even if no appeal was filed against the classification list.

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