1994 (11) TMI 248 - AT - Central Excise

Summary

Issues:
1. Interpretation of Section 35E(3) of the Act regarding the time limit for review orders by the Collector.
2. Application of the principle of vested right to appeal in light of subsequent statutory amendments.
3. Consideration of the effect of statutory amendments on the timeline for review orders by the Collector.

Analysis:
The judgment by the Appellate Tribunal CEGAT, Bombay involved two appeals concerning the interpretation of Section 35E(3) of the Act regarding the time limit for review orders by the Collector. The Collector (Appeals) had refused to entertain the appeals filed by the Department, citing that the review orders were barred due to an amendment restricting the review period from two years to one year, effective from 11-5-1984.

In the first case (Appeal 209/86), the Tribunal considered the argument presented by the Department that the review orders were within the two-year time limit as per the law when the original orders were passed. The Tribunal referred to the principle that the right to appeal is a vested right and can only be taken away by a specific enactment. They found that the amendment did not take away the Department's right to file an appeal within two years, as the amendment came into effect after the original order. Therefore, the Tribunal allowed Appeal 209/86, setting aside the review order and remanding the case for further consideration.

In the second case (Appeal 210/86), the Tribunal noted that the review order was passed after the statutory amendment had come into effect, providing ample time for compliance with the new law. As the review order was issued after the deadline, the Tribunal found no legal justification for the Department's delay in reviewing the order. Consequently, Appeal 210/86 was dismissed.

The Tribunal relied on previous decisions and the principle of vested rights in determining the outcome of the appeals. They emphasized the importance of considering the timeline for review orders in light of statutory amendments and the preservation of vested rights to appeal. The judgment provides a detailed analysis of the legal principles and their application to the specific facts of each case, resulting in distinct outcomes for the two appeals based on the timing of the review orders in relation to the statutory amendments.