2001 (2) TMI 237 - AT - Central Excise

Summary

Issues involved:
1. Maintainability of appeals related to credit of money scheme contained in Rule 57K and Modvat credit on inputs or capital goods following the omission of relevant rules.
2. Applicability of Section 35B of the Act in determining the maintainability of appeals.
3. Impact of the Supreme Court judgment in the case of Kholapur Cane Sugar Works Ltd. on the proceedings initiated under the omitted rules.
4. Consideration of the General Clauses Act in the absence of saving clauses for repealed rules.

Detailed Analysis:
1. The appeals filed by various appellants related to the credit of money scheme under Rule 57K and Modvat credit on inputs or capital goods following the omission of relevant rules. The parties argued for the maintainability of appeals despite the omission of rules, citing previous Tribunal decisions and the need to redress grievances. However, the Department and some representatives contended that all proceedings initiated under the repealed provisions should cease. The Tribunal noted the absence of saving clauses in the omissions and dismissed the appeals as not maintainable, as all actions must stop with the repeal of rules.

2. The appellants argued for the maintainability of appeals under Section 35B of the Act, emphasizing the absence of a notification to restrict the Tribunal's jurisdiction regarding Modvat credit. They highlighted the relevance of the date of passing the order in determining the appeal's maintainability post the omission of rules. The Tribunal considered these arguments but ultimately dismissed the appeals, stating that all proceedings under the repealed rules would lapse without saving clauses.

3. The Supreme Court judgment in the case of Kholapur Cane Sugar Works Ltd. was cited by the appellants to support the maintainability of appeals despite the omission of rules. They emphasized the binding nature of the Supreme Court's decision and its impact on ongoing proceedings. However, the Tribunal noted that the repealed rules were void ab initio, leading to the dismissal of appeals as not maintainable due to the absence of saving clauses.

4. The Tribunal extensively analyzed the applicability of the General Clauses Act in the absence of saving clauses for repealed rules. It referenced previous Tribunal decisions and the Supreme Court's clarification on the lapsing of proceedings upon the repeal of rules without saving clauses. The Tribunal concluded that all actions must stop with the omission of rules, leading to the dismissal of appeals initiated under the repealed provisions.