2000 (2) TMI 823 - SUPREME COURT

Applicability of Rules 10 and 10A of the Central Excise Rules - Held that:- In the case in hand Rule 10 or Rule 10A is neither a “Central Act” nor a “Regulation” as defined in the Act. It may be a Rule under Section 3(15) of the Act. Section 6 is applicable where any Central Act or Regulation made after commencement of the General Clauses Act repeals any enactment. It is not applicable in the case of omission of a “Rule”.

In the present case, as noted earlier, Section 6 of the General Clauses Act has no application. There is no saving provision in favour of pending proceeding. Therefore action for realisation of the amount refunded can only be taken under the new provision in accordance with the terms thereof.

From the contents of the provisions in the Rules it is clear that it did not contain any saving clause for continuance of the proceeding initiated under the rule which was deleted/omitted. There is also no provision in Section 11A or in any other Section of the Act saving the proceedings initiated under the deleted/omitted provision. The consequential position that follows is that the proceeding lapsed after 6th August 1977 and any order passed in the proceeding thereafter is to be treated as non-est. In case the notice was issued after Section 11A was introduced in the Act, the proceeding will continue and will not be affected by this decision.