1995 (5) TMI 163 - AT - Customs

Summary

Issues:
1. Interpretation of Section 6 of the General Clauses Act, 1897 in the context of the repeal of the Gold (Control) Act, 1968.
2. Whether the service of a show cause notice before the repeal of the Act is a legal requirement for the continuation of proceedings under Section 6 of the General Clauses Act.

Analysis:
The judgment pertains to a reference application filed against an order of the Tribunal dated 18-3-1992, where the Tribunal set aside an order passed by the Collector of Customs under the Gold (Control) Act, 1968. The key contention raised was regarding the initiation of proceedings through the issuance of a show cause notice before the repeal of the Act on 6-6-1990. The department argued that the show cause notice was served on the respondent on the same day the Act was repealed, contending that under Section 6 of the General Clauses Act, legal proceedings initiated before the repeal could continue. The Judge acknowledged the factual context where the show cause notice was issued two days before the repeal and held that the question of law raised by the department merited consideration.

The Judge examined the provisions of Section 6 of the General Clauses Act, which deal with the effect of the repeal of statutes. The section states that legal proceedings or investigations initiated under a repealed Act can be continued as if the repealing Act had not been passed. In this case, since the show cause notice was issued before the repeal and allegedly served on the day of the repeal, the Judge agreed with the department's argument that the proceedings should be allowed to continue under Section 6 of the General Clauses Act. Consequently, the Judge referred a question of law to the High Court regarding whether the issuance and service of a show cause notice before the repeal of the Gold (Control) Act were necessary for the continuation of proceedings under the General Clauses Act.

In conclusion, the Judge dismissed the cross-objection filed by the department, emphasizing the significance of the interpretation of Section 6 of the General Clauses Act in determining the continuity of legal proceedings following the repeal of the Gold (Control) Act, 1968. The judgment underscores the importance of procedural requirements and legal implications concerning the initiation and continuation of proceedings under the General Clauses Act in the context of a repealed statute.