1990 (3) TMI 197 - AT - Central Excise

Summary

Issues:
1. Appeal filed by the Department against rejection of refund on the ground of limitation under Sec. 129D(2) of the Customs Act, 1962.
2. Interpretation of the limitation period under Sec. 129D(3) before and after the amendment by the Finance Act, 1984.
3. Application of Sec. 6 of the General Clauses Act to pending proceedings post-amendment.
4. Comparison with a similar case dealt with by CEGAT regarding vested right to appeal.

Analysis:

The appeal before the Appellate Tribunal CEGAT, Bombay was directed against the rejection of a refund order by the Collector of Customs (Appeals) solely based on the ground of limitation under Sec. 129D(2) of the Customs Act, 1962. The Department contended that the appeal was filed within the prescribed period, which was two years at the time of the refund order but was subsequently reduced to one year by an amendment in the Finance Act, 1984. The Department argued that the amendment did not have retrospective effect, and the appeal should not have been rejected based on the amended limitation period.

The Tribunal considered the timeline of events, noting that the refund order was passed before the amendment came into effect. The Tribunal emphasized that the right to review and file an appeal is a statutory right that cannot be divested by a subsequent enactment unless expressly provided. It was established that the amendment did not contain a saving clause or retrospective effect, leading to the conclusion that the appeal filed within the original two-year period should be considered valid.

Furthermore, the Tribunal invoked Sec. 6 of the General Clauses Act to support the interpretation that the appeal, being a continuation of proceedings initiated before the amendment, should be governed by the pre-amended provisions. A precedent cited by the Department, Collector of Central Excise v. Sarabhai Chemicals, highlighted the principle that a vested right to appeal can only be taken away by a specific enactment expressly or implicitly, which was not the case with the amendment in question.

Consequently, the Tribunal held that the Collector of Customs (Appeals) erred in rejecting the appeal based on limitation and set aside the order. The case was remanded to the Collector of Customs (Appeals) for consideration on merits. The Tribunal directed expedited disposal of the appeal within six months due to the age of the refund claim from 1979.

In summary, the judgment revolved around the interpretation of the limitation period under the Customs Act, 1962, before and after an amendment, the application of the General Clauses Act to pending proceedings, and the preservation of vested rights to appeal in light of subsequent statutory changes.