Approved classification lists can be reopened to correct wrong classification, and retrospective review was upheld.

An approved classification list did not bar the proper officer from reopening the classification when the goods were found to have been wrongly classified, and the officer could issue notice to correct an error of fact or law after giving the assessee a reasonable opportunity. The amendment to Section 11A of the Central Excises Act supported recovery of short-paid duty despite prior approval of assessment, so the challenge to the review mechanism failed. The plea that the review operated retrospectively was rejected, and the retrospective effect objection was held untenable.

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Issues: Whether an approved classification list could be reopened and reviewed when the goods were found to be wrongly classified, and whether such review could operate retrospectively.

Analysis: The classification lists had earlier been approved, but the competent officer later found that the goods were wrongly classified. The Tribunal accepted that approval of a classification list does not bar the proper officer from issuing notice and initiating proceedings to correct an error of fact or law, provided reasonable opportunity is given to the assessee. The amendment to Section 11A of the Central Excises Act also supported recovery of short-paid duty notwithstanding prior approval of assessment, and the plea against retrospective effect was held to be untenable.

Conclusion: The approved classification list could be reviewed and the review was not invalid for being retrospective; the challenge failed.

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