1998 (7) TMI 191 - AT - Central Excise

Summary

Issues:
1. Referral of question of law to High Court under Section 35G of Central Excises and Salt Act, 1944 regarding rejection of departmental appeal on the ground of limitation of time.
2. Conflict between judgments of different High Courts on limitation period under Rule 57-I prior to its amendment in 1988.

Issue 1: Referral of Question of Law to High Court
The Commissioner of Central Excise, Calcutta sought to refer a question of law to the High Court under Section 35G of the Central Excises and Salt Act, 1944. The question pertained to the justification of the Hon'ble CEGAT in rejecting the departmental appeal based on the limitation of time. The issue arose as there was no specific time limitation prescribed under Rule 57-I at the relevant period. The appellant argued that similar questions had been referred to the Supreme Court in previous cases like Collector of Central Excise v. Maradia Steel (P) Ltd. and Collector of Central Excise, Jaipur v. Tubes and Wires. The appellant urged that the matter should be referred to the Supreme Court instead of the Calcutta High Court due to conflicting judgments of different High Courts.

Issue 2: Conflict of Judgments on Limitation Period
The respondent, on the other hand, contended that the Tribunal had relied on the Larger Bench decision in Brakes India Ltd. v. Collector of Central Excise and another decision in Collector of Central Excise v. Jay Hind Bottling Company. These decisions emphasized that even though there was no specific limitation period mentioned in Rule 57-I before October 6, 1988, demands had to be made within a reasonable period. The Tribunal considered six months or five years as reasonable periods of limitation. The respondent highlighted that the Tribunal's decision was in line with the Gujarat High Court's ruling in the case of Torrent Laboratories (P) Ltd. The respondent pointed out that similar reference applications on the issue had been dismissed by the Tribunal in cases like CCE v. TELCO Ltd., CCE v. Asim Paper Product Pvt. Ltd., and CCE v. Shri Ram Drinks (P) Ltd.

In conclusion, the Tribunal decided to refer the question of whether Rule 57-I was subject to the provisions of limitation under Section 11A of the Central Excises and Salt Act, 1944 to the Hon'ble Supreme Court. This decision was made based on the precedent of similar questions being referred to the Supreme Court in previous cases and to seek clarification on the relationship between Rule 57-I and the limitation period before its amendment in 1988.