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TMI Blog2007 (11) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 30th June, 1999 passed by the Commissioner of Central Excise (Appeals), Mumbai, was allowed. 3. The basic fact of the matter is not in dispute. The appellant herein manufacture HDPE bags. They used to classify the said bags for the purpose of payment of excise duty under Chapter 63 of the Central Excise Tariff Act (herein-after referred as 'the Act'). The period for which the excise duty was payable is 1-4-1992 to 15-10-1992. Excise duty was paid accordingly. It is also not in dispute that different High Courts took different views as to whether the duty is payable under Chapter Heading 63.54 or Chapter heading 39 of the Act. 4. It is furthermore not in dispute that a Division Bench of the High Court of Madhya Pradesh in Raj Pack Wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise and Salt Act, 1944. By a judgment and order dated 30th June, 1999 the said appeal was dismissed. Feeling aggrieved. Revenue preferred an appeal before the Tribunal which, as noticed hereinbefore, has been allowed by reason of the impugned judgment. 7. The Tribunal in its judgment relied upon a three-Judge Bench decision of this Court in ITW Signode India Ltd. v. Collector of Central Excise [2003 (158) E.L.T. 403 (S.C.)] for arriving at its decision that in view of the amendment of Section 11A of the Central Excise Act, the validity whereof had been upheld, the revenue was within its jurisdiction to get the differential duty which has not been recovered. 8. Mr. Madhav Rao, learned counsel appearing on behalf of the appellant would, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been issued, it was contended that the validity of the said circular letter having not been challenged by reason thereof, the mistake committed by the revenue in classifying HDPE bags under Chapter heading 63 came to be known to them in terms of the said judgment. 11. It is beyond any pale of doubt that Section 11A of the Central Excise Act was amended having regard to the Constitution Bench decision of this Court in Collector of Central Excise, Baroda v. Cotspun Limited, [1999 (113) E.L.T. 353 (S.C.)]. Amendment of Section 11A was found in ITW Signode (supra) as a validdating legislation, retrospective operation whereof, therefore, was held to be permissible. In arriving at the said decision, this Court noticed a large number of bindi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly followed the said principle of interpretation of statute. A different situation has arisen now having regard to the fact that not only the substantive provision dealing with the consequence of non-levy, non-payment of short levy or short-payment or erroneous refund but also has laid down the procedure therefor. A statute, it is trite, must be read as a whole. The plenary power of legislation of the Parliament or the State Legislature in relation to the legislative fields specified under Seventh Schedule of the Constitution of India is not disputed. A statutory act may be enacted prospectively or retrospectively. A retrospective effect indisputably can be given in case of curative and validating statute. In fact curative statutes by thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was in the aforementioned fact situation that the Board thought it fit and expedient in the interest of administration of taxing statute to bring out uniformity in the assessment practice. 14. By reason of the said circular, proper classification was made for the first time. It was done with the purpose of ensuring uniformity therein. It was expressly directed to have prospective application. Although the decision of the Orissa High Court was the basis for issuance of the said circular, it was to operate independent thereof as it was clearly noticed that the same had not attained finality. The said circular, so far as the Revenue is concerned, was, therefore, to operate irrespective of the decision of the Orissa High Court. 15. Having s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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