2008 (5) TMI 569 - AT - Central Excise

Summary

Issues involved:
1. Time-barred appeals due to amendment in Section 35E of Central Excise Act reducing review period.
2. Interpretation of retrospective nature of amended provisions.
3. Applicability of amended provisions to review orders passed after the amendment date.
4. Consideration of substantive right of appeal in light of procedural amendments.

Detailed Analysis:
1. The appeals were filed against an order dismissing them as time-barred after an amendment reduced the review period under Section 35E of the Central Excise Act. The Commissioner (Appeals) held that the review order, passed after the amendment, must comply with the new three-month timeline. The Revenue argued that the review order was within the original one-year review period when the adjudication order was passed. They cited a Bombay High Court decision stating that amendments without retrospective indication do not affect accrued rights. The respondent contended that any review order post-amendment beyond three months is time-barred due to the lack of a saving clause in the amendment.

2. The Hon'ble Bombay High Court's decision in the Electrofronts case was pivotal in determining the retrospective nature of the amended provisions. The Court emphasized that the right of appeal is enforceable within the prescribed limitation period, and failure to do so extinguishes the right. The Court clarified that the amended Section 35 did not have retrospective effect and did not impact rights accrued before the amendment. The Court differentiated between procedural and substantive rights, asserting that the amendment affected substantive rights, thereby not being retrospective.

3. The judgment highlighted the importance of distinguishing between procedural and substantive laws, especially concerning statutes of limitation. It noted that altering the time for instituting proceedings could be procedural if within the existing timeframe. However, enlarging or abridging the time when a cause of action is already time-barred affects substantial rights. The judgment emphasized that the litigant's substantive right of appeal is not merely procedural, and amendments impacting such rights are not retrospective.

4. Ultimately, the Tribunal held that the amendment to Section 35E did not have retrospective effect and did not impact the substantive right of parties to file appeals within the original limitation period. The appeals were required to be decided based on the law existing at the time of the original order-in-original. The Commissioner's dismissal of the appeals as time-barred was set aside, and the matter was remanded for consideration on merits after providing an opportunity for hearing to the respondents.