2001 (6) TMI 76 - AT - Central Excise

Summary

Issues involved: Continuation of Modvat cases after the repeal of Modvat Rules without saving provision.

The Appellate Tribunal CEGAT, New Delhi addressed the issue of the continuation of Modvat cases post the repeal of Modvat Rules without any saving provision. The Tribunal noted that the Central Excise Act did not initially contain any provision saving actions initiated under Rule 57U of the erstwhile Modvat Rules. However, the Finance Act, 2001 introduced Section 38A, which deemed the provision to have been inserted from a prior date, ensuring that the repeal of Modvat provisions would not affect previous operations, rights, privileges, obligations, or liabilities acquired under the repealed rules. The Tribunal emphasized that the Finance Act, 2001 had resolved the issue, and as a result, Modvat appeals pending before the Tribunal needed to be adjudicated on their merits. The matter was remanded back to the regular Bench for further proceedings.