Imported rubber cess dispute turns on non-retrospective effect of circular withdrawal for earlier imports.

Imported rubber was treated as not attracting cess, following an earlier Tribunal view that the levy did not apply to such imports. A later withdrawal of the administrative circular was held not to govern imports completed almost two and a half years earlier, so the prior position continued to apply to those transactions. The impugned order was set aside and relief followed accordingly.

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Issues: Whether cess was leviable on imported rubber and whether the subsequent withdrawal of the administrative circular could be applied to imports made earlier.

Analysis: The issue was treated as covered by an earlier Tribunal decision holding that cess was not applicable to imported rubber. The imports in question were made before the withdrawal of the earlier Ministry circular, and the later withdrawal could not govern imports effected almost two and a half years earlier. The Tribunal therefore followed the earlier final order and accepted the appellant's contention that cess was not payable on the imported goods.

Conclusion: Cess was not leviable on the imported rubber, and the withdrawal of the circular did not apply to the earlier imports; the issue was decided in favour of the assessee.

Final Conclusion: The impugned order was set aside and the appeals were allowed with consequential relief according to law.

Ratio Decidendi: A later withdrawal or modification of an administrative circular cannot be applied to deny relief for imports completed before that withdrawal, where the governing issue has already been decided as not attracting cess on imported rubber.

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