Collectors of Central Excise v. New Tobacco Co.
(1998) 8 SCC 250 • Supreme Court of India • Classroom-style explainer
Quick Summary
The Court said a fiscal notification starts to work only when people can actually access it. Printing in the Gazette is not enough by itself. No extra duty can be claimed for days before public access.
Issues
- Is the notification effective on the date of Gazette printing or on the date of public availability?
- Can differential excise duty be charged for the period before public access?
Rules
- A notification is effective only when it becomes publicly accessible.
- Natural justice: people must know the rule before they are bound by it or penalised under it.
Facts (Timeline)
Mar 1, 1979: Notification 30/79 sets duty rates for cigarettes.
Nov 30, 1982: Notification 284/82 rescinds 30/79 and raises rates, but copies are not yet available to the public.
Nov 30–Dec 8, 1982: Company clears 79,456 million cigarettes and pays at old rates, claiming no public access to the new notification.
Dec 8, 1982: Controller of Publications later confirms: notification available for sale to public on this date.
Dec 22, 1982: Show Cause Notice asks for differential duty for Nov 30–Dec 8.
1983–1985: Assistant Collector and then Collector (Appeals) uphold demand.
CEGAT: Rules for the company—effective date is when the public can access the notification.
Supreme Court: Affirms CEGAT; other similar matters remitted to find true access dates; refunds/liabilities via Section 11-B.
Arguments
Appellant (Revenue)
- Gazette date should be treated as the effective date.
- Duty at higher rate is payable from Nov 30, 1982.
Respondent (Company)
- Public must be able to access the notification.
- No duty difference before Dec 8, 1982, the first public access date.
Judgment (Held)
- Notification becomes effective only when publicly accessible, not merely on Gazette print.
- No differential duty for Nov 30–Dec 8, 1982, since access began on Dec 8, 1982.
- Similar disputes remitted to confirm real access dates; refunds/liabilities to follow Section 11-B.
Ratio Decidendi
“Publication” under Section 38 means effective communication to the public. A fiscal rule binds only after access is real, not merely after printing.
Why It Matters
- Protects taxpayers from hidden changes.
- Sets a clear, fair start time for fiscal rules.
- Aligns excise practice with natural justice.
Key Takeaways
- Effective date = public access date, not print date.
- No retro duty before access.
- Use Section 11-B for refunds/liabilities.
- Natural justice demands real notice.
Mnemonic + 3-Step Hook
Mnemonic: “PRINT ≠ PUBLIC”
- People must see the rule.
- Until access, old rate stays.
- Back claims fail for pre-access days.
3-Step Hook:
- Ask: Was it publicly accessible?
- Check: Access date vs clearance period.
- Decide: Duty only after access.
IRAC Outline
Issue: When is a notification effective, and can duty be demanded before public access?
Rule: Effect only upon public accessibility; natural justice requires fair notice.
Application: Access began on Dec 8; earlier clearances followed the old rates; demand for the prior period fails.
Conclusion: Notification effective from Dec 8, 1982; no differential duty for Nov 30–Dec 8, 1982.
Glossary
- Publication
- Making a rule available to the public, not just printing it.
- Section 38 (CEA)
- Requires publication of notifications.
- Section 11-B (CEA)
- Procedure for refunds and related claims.
FAQs
- CASE_TITLE
- Collectors of Central Excise v. New Tobacco Co.
- PRIMARY_KEYWORDS
- Central Excise notification effectiveness, Gazette vs public access, (1998) 8 SCC 250, natural justice, Section 38, differential duty
- SECONDARY_KEYWORDS
- publication requirement, Section 11-B refunds, effective date, CEGAT affirmation, fiscal notifications
- PUBLISH_DATE
- 2025-10-23
- AUTHOR_NAME
- Gulzar Hashmi
- LOCATION
- India
- SLUG
- collectors-of-central-excise-v-new-tobacco-co
- CANONICAL
- https://thelaweasy.com/collectors-of-central-excise-v-new-tobacco-co/
Popular & Recent Post
Comment
Nothing for now