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M/s Dream Castle, rep. by its Proprietor Sri S. Venkataramanan Versus Union of India, Ministry of Finance, rep. by its Secretary, Department of Revenue, The Commissioner of Central Excise, Chennai - III Commissionerate, Chennai, Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench-Chennai M/s. Fifth Avenue Sourcing (P) Limited

Whether the amendment to Section 35F of Central excise Act, 1944 could be prospective or retrospective in nature - Condition to make a pre-deposit of a fixed percentage of the tax demanded or penalty levied or both - Petitioner contended that inasmuch as the right of appeal available to a person is a vested right, which accrues on and from the date on which the lis commences, the date on which such right of appeal accrues should be the date on which the original cause itself arose. Therefore, th .....

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conditions so imposed are not so onerous as to amount to unreasonable restrictions rendering the right almost illusory. - Therefore, if one condition that was already available in the statute for the exercise of a right of appeal, is merely replaced by another condition, the same cannot be said to be retrospective, unless it is definitely shown that the amended condition is more onerous than the unamended condition. When the unamended condition gave only a chance or hope for an assessee to g .....

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itioner contended that the second proviso to the amended Section 35F cannot be taken to have excluded all other possible alternatives, that could arise out of the amendment of a proviso - Held that :- on the first contention of the writ petitioner, we have independently come to a conclusion that even the substantive provision of Section 35-F, after its amendment, is not capable of any other interpretation. Our conclusions on the first contention was not on the basis of the second proviso. Theref .....

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o proceedings initiated after 6.8.2014 - Held that:- the decision of the High Court of Andhra Pradesh relied upon by the learned Senior Counsel in K.Rama Mohanarao is only a prima facie view. We have already analysed this decision while dealing with the first contention. Similarly, the decision of the Kerala High Court in Muthoot Finance Limited has also been analysed in great detail by us. With great respect to these Courts, we have not agreed with the view taken by them, for the reasons that w .....

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e the Appellate Authority and sought a clarification that the amendment would not apply to his case - Learned Single Judge agreed with the said contention and allowed the assessee to file an appeal along with an application for waiver without making a pre-deposit of 7.5% as per the amendment - Held that:- the interpretation given by the learned Judge to the amendment, is not correct. - Decided in favour of appellant - W.P.No.13431 of 2015 and W.A.No.1424 of 2015 - Dated:- 18-4-2016 - MR.JUSTICE .....

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er direction to CESTAT not to insist upon a pre-deposit of 7.5% of the tax amount, as per the amendment that came into effect on 6.8.2014, the writ petition is filed by yet another assessee seeking declaration that Section 35F of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994 would apply only to the show cause proceedings initiated on or after 6.8.2014. 2. We have heard Mr.C.Natarajan, learned Senior Counsel appearing for the petitioner in the writ petition, Mr.V.Sund .....

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round the question as to whether the amendment to Section 35F could be prospective or retrospective in nature. 4. A few facts out of which both these proceedings arise, may be necessary, before we proceed to deal with the legal issues raised. W.A.No.1424 of 2015 5. The Commissioner of Service Tax is the appellant in this writ appeal. The respondent/assessee is engaged in the business of sourcing of Indian Garments for Foreign Buyers. The assessee obtained service tax registration under the categ .....

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firmed the proposal. 7. Challenging the said Order-in-Original, the assessee filed a writ petition in W.P.No.12546 of 2015. Though the assessee contended that the Order-in-Original was a non-speaking order and that it was also without jurisdiction, the assessee appears to have submitted before the learned single Judge that he was also prepared to go before the Appellate Authority namely CESTAT. The assessee claimed that the amendment introduced to Section 35F of the Act with effect from 6.8.2014 .....

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nded. Aggrieved by the interpretation given by the learned Judge to the date of coming into force of the amendment, the Commissioner of Service Tax has come up with the above appeal. W.P.No.13431 of 2015 9. The petitioner in this writ petition is in the business of real estate agency and consultancy. The petitioner has registered itself with the Department of Service Tax, under the category "Real Estate Agency Services", in January 2007. 10. In the year 2008, Survey, Intelligence and R .....

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t to tax. 11. The writ petitioner filed a detailed reply to the show cause notice on 6.9.2010 and also made written submissions on 25.11.2011. The petitioner claimed in the reply that only an amount of ₹ 77,49,124/- was payable as Service Tax for the period in question and that the same had already been paid. 12. However, the objections of the petitioner were overruled and an Order-in-Original dated 11.8.2014 was passed, confirming the demand of Service Tax to the tune of ₹ 33,59,82, .....

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missed by a learned single Judge on the ground that the petitioner has an effective alternative remedy of appeal before the CESTAT and that merely because the petitioner may have to make a pre-deposit of 7.5% of the demand, the petitioner cannot bypass the alternative remedy of appeal. 15. Finding that an appeal to the CESTAT can be entertained, as per the amendment to section 35 F only if a pre-deposit of 7.5% of the duty is paid, the writ petitioner has chosen not to go before the CESTAT but t .....

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that they would be governed by the statutory provisions that existed before 6.8.2014. Before 6.8.2014, the CESTAT was vested with a discretion to waive the pre-deposit condition in entirety, if the insistence of pre-deposit would cause undue hardship to the assessee. 17. In other words, the writ petitioner hopes that if the amendment that came into effect on 6.8.2014 is held to be not applicable to his appeal despite the fact that even the Order-in-Original was passed only after 6.8.2014, he wo .....

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he amendment. The writ petitioner is seeking only a declaration that the amendment would apply only to show cause proceedings initiated after 6.8.2014 and not to proceedings which were initiated, pending or disposed of at the Original stage, before the cut-off date namely 6.8.2014. STATUTORY PROVISIONS 19. Section 35F of the Act, as it stood before the amendment and as it now stands after the amendment by Finance Act, 25 of 2014 with effect from 6.8.2014 are presented in a tabular column for eas .....

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any particular case, the Commissioner (Appeals) or the Appellate Tribunal is of opinion that the deposit of duty demanded or penalty levied would cause undue hardship to such person, the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal, may dispense with such deposit subject to such conditions as he or it may deem fit to impost so as to safeguard the interests of revenue: PROVIDED FURTHER that where an application is filed before the Commissioner (Appeals) for dispensing wit .....

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per cent, of the duty, in case where duty or duty and penalty are om dispute, or penalty, where such penalty is in dispute, in pursuance of a decision or an order passed by an officer of Central Excise lower in rank than the Principal Commissioner of Central Excise or Commissioner of Central Excise; (ii) against the decision or order referred to in clause (a) of sub-section (1) of section 35B, unless the appellant has deposited seven and a half per cent, of the duty, in case where duty or duty a .....

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Prior to the amendment, the rule was that the person desirous of filing an appeal should deposit the duty demanded, during the pendency of the appeal. But the Commissioner (Appeals) and the Appellate Tribunal were granted a discretion to dispense with the requirement of such deposit, in full or in part, if the Appellate Authority is satisfied that such pre-deposit would cause undue hardship to such person. But by the amendment, the rule requiring a pre-deposit of the entire duty as well as the f .....

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ght forth by the amendment is that the distinction between the goods which are under the control of the Central Excise authorities and those which are not under the control of the Excise authorities has been removed. Prior to the amendment, the rule that the entire duty demanded should be deposited during the pendency of the appeal, was not applicable to cases where the goods were under the control of the Central Excise authorities. But now irrespective of whether the goods are under the control .....

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et none of those persons have come up with a challenge to the amendment as such. 22. In respect of those whose goods are not under the control of Central Excise authorities, the effect of the amendment could not be termed either as more beneficial or as more onerous. The amendment has actually removed the element of uncertainty in these cases, as persons who fall under this category, could have earned anything between a 100% waiver and a 0% waiver, at the discretion of the Appellate Authority, b .....

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f appeal available to a person is a vested right, which accrues on and from the date on which the lis commences, the date on which such right of appeal accrues should be the date on which the original cause itself arose. Therefore, the right so vested cannot be taken away retrospectively by an amendment. (ii) His second contention is that the second proviso to the amended Section 35F cannot be taken to have excluded all other possible alternatives, that could arise out of the amendment of a prov .....

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le interpreting the amendment made to sub-section (3) and (3A) of Section 85 of the Act, the courts have held that they have to be applied only to proceedings initiated after the amendment. The learned counsel further submitted that even the Department had construed the amended provisions in the same manner, as seen from two Circulars issued by the Central Board of Excise and Customs. By Circular No.984/8/2014-CX dated 16.9.2014, the Department issued clarifications with regard to the amended pr .....

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.8.2014. The second Circular became necessary in view of a confusion created in para 1.2 of the first Circular to the effect that the amended provisions contain a specific saving clause to the effect that all pending appeals and stay applications will be governed by the erstwhile proceedings. The further contention of Mr.Joseph Prabhakar learned counsel for the respondent/assessee in the writ appeal is that by refusing to make a pre-deposit of 7.5%, the assessees do not gain anything. If an asse .....

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or after the amendment. 25. We have carefully considered the above submissions. 26. As we have pointed out earlier, the effect of the amendment is actually two fold, namely (a) the concession granted to those whose goods are in the custody of the Central Excise authorities, not to make any predeposit has been taken away, and (b) that insofar as other cases are concerned, the discretion that was vested with the Appellate Authority has now been taken away, removing thereby the glorious uncertainti .....

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n a matter of procedure and a matter of right in existence at the time of passing of a new enactment and the opinion rendered to the effect that to deprive a suitor in a pending action of an appeal to a superior Tribunal which belonged to him as of right is a very different thing from regulating the procedure. The Court also took note of the fact that the opinion of the Privy Council in Colonial Sugar Refining Company Ltd. was applied in India in Nana bin Aba v. Sheku bin Andu [(1908 ILR 32 Bom. .....

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en analysed the decision of the Full Bench of this Court in Ramakrishna Iyer v. Sithai Ammal [(1925) ILR 48 Mad. 620], where this Court followed the distinction that was made out in Colonial Sugar Refining Company Ltd. between a case of procedure and a real right to invoke the aid of a higher Tribunal. The Supreme Court also took note of a decision of the Special Bench of the Calcutta High Court in Sadar Ali v. Dalimuddin [(1929) ILR 56 Cal. 512], wherein Rankin, CJ, on behalf of the Special Ben .....

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his right became vested in a party when the proceedings were initiated. Such a right was held by the Supreme Court in Hoosein Kasam Dada to be a right that could not be taken away except by express enactment or necessary intendment. If the amendment had the effect of whittling down the right of appeal itself, then it could not have retrospective effect. 30. In paragraph 24 of its decision in Garikapatti Veeraya, the Supreme Court opined that the opinion of the Privy Council in Colonial Sugar Ref .....

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ertained by the Appellate Court on the ground that the decree amount had not been deposited as per the proviso inserted by the amended Act of 1928. The Court held that by requiring pre-deposit as a condition precedent to the admission of the appeal, a new restriction has been on the right of appeal. Therefore, the Court came to the conclusion that the right of appeal had been affected by the amended provision and that in the absence of an express enactment, the amendment cannot apply to proceedi .....

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ies with it the implication that all rights of appeal then in force are preserved to the parties thereto till the rest of the career of the suit. (iv) The right of appeal is a vested right and such a right to enter the superior court accrues to the litigant and exists as on and from the date the lis commences and although it may be actually exercised when the adverse judgment is pronounced such right is to be governed by the law prevailing at the date of the institution of the suit or proceeding .....

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04.7.1963. But, in the meantime, a notification dated 04.5.1963 was issued in exercise of the powers conferred under Section 12 of the Central Excise and Salt Act, 1944, declaring the provisions of Section 129 of the Customs Act, 1962, to be applicable in regard to like matters. The High Court held the notification on which reliance was placed by the revenue, to be in excess of the powers conferred. When the matter was taken to the Supreme Court, the Supreme Court held that Section 35 of the Exc .....

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nt is calculated to interfere with or fetter, if not to impair or imperil, the substantive right. The right that the amended section gives is certainly less than the right which was available before. A provision which is calculated to deprive the appellant of the unfettered right of appeal cannot be regarded as a mere alteration in procedure. Indeed the new requirement cannot be said merely to regulate the exercise of the appellant's pre-existing right but in truth whittles down the right it .....

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nnot be made applicable to proceedings that had been initiated before the date of coming into force of the amendment. 34. Drawing our attention to the decision in R.Rajagopal Reddy v. Padmini Chandrasekharan [AIR 1996 SC 238], the learned senior counsel further contended that where a statutory provision which has not made retrospective by the legislature seeks to affect the vested rights and corresponding obligations of parties, such provision cannot be said to have any retrospective effect by n .....

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xports [2006 (3) CTC 81]. In that case, the Division Bench of this Court was concerned with the effect of an amendment made to the Tamil Nadu General Sales Tax Act, 1959, by the amendment Act 14 of 1999. Prior to the amendment, the assessees were obliged only to pay the tax admitted by them, for filing statutory appeals. But, after the amendment, a mandatory pre-deposit of 25% of the difference between the tax assessed and admitted became mandatory. Therefore, two questions were taken up for con .....

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ch the right of the assessees to prefer an appeal under Section 31 or Section 36 of the Act is the date on which the returns are filed under the Act. In all these appeals, returns were filed long prior to the date when the provisions of Section 31 of the Act was amended by virtue of Act 14 of 1999. Further more, it is not disputed by the parties that the aforesaid amendments to the Act have not been given retrospective effect as and from an anterior date and those amendments are prospective. The .....

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Court took a preliminary view that the writ petition raised two issues, namely (a) the vires of the amendment, and (b) the retro-activity of the amendment. On the second point, the Andhra Pradesh High Court took a view that the amendment may not be applicable to cases where a show cause notice had been issued before the coming into force of the amendment and where the lis had started before the amendments. The case appears to be pending before the Andhra Pradesh High Court. 38. The interim orde .....

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e decision of the single Judge of the Kerala High Court in Muthoot Finance Ltd. was followed. 39. However, a Division Bench of the Allahabad High Court struck a different note in Ganesh Yadav v. Union of India [2015 (39) STR 177 (All.)]. In the said case, the Allahabad High Court was dealing with a writ petition challenging the very vires of the amendment. After pointing out in paragraph 4 of its decision that as a first principle of law, the right of appeal is a statutory right and that it is a .....

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ahabad High Court took up for consideration the next question which is exactly identical to the question that is raised in the present case. After taking note of the decision of the Privy Council in Colonial Sugar Refining Co. Ltd., the decision of the Supreme Court in Hoosein Kasam Dada and the decisions of the Supreme Court in Jose Da Costa v. Bascora Sadasiva Sinai Narcornim [(1976) 2 SCC 917] and Ramesh Singh v. Cinta Devi [AIR 1996 SC 1560], the Allahabad High Court held in paragraphs 19 an .....

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, an appellant has to deposit the duty and penalty as stipulated and unless the appellant were to do so, the Tribunal shall not entertain any appeal. This provision would, therefore, indicate that it would apply to all appeals which would be filed on and from the date of the enforcement of Section 35 of the Act. 20. The intendment of Section 35F of the Act is further clarified by the second proviso which stipulates that the provisions of the section shall not apply to stay applications and appea .....

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35F(1) of the Act as well as by the second proviso to the provision, it is clear that appeals which are filed on and after the enforcement of the amended provision on 6 August 2014 shall be governed by the requirement of pre-deposit as stipulated therein. The only category to which the provision will not apply that would be those where the appeals or, as the case may be, stay applications were pending before the appellate authority prior to the commencement of Finance (No.2) Act, 2014." 41 .....

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t apply to appeals arising out of the orders passed by the original authority before the date of coming into force of the amendment. 42. Mr.Joseph Prabhakar, learned counsel also brought to our notice a decision of the Division Bench of the Delhi High Court in Bajaj Overseas Impex v. Special Commissioner [2013 (62) VST 397]. The said case arose out of a dispute with regard to the applicability of the third proviso to Section 74(1) of the Delhi Value Added Tax Act, 2004, inserted by way of an ame .....

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e earlier. 43. But, a Division Bench of the Gujarat High Court took a different view in Premier Polyspin Pvt. Ltd. v. Union of India [2015 TIOL 1265 HC]. In that case, the Gujarat High Court was concerned with the very same amendment to Section 35F of the Central Excise Act with which we are concerned even in this case. Though the Gujarat High Court did not go into greater details, the Court held in paragraph 4 as follows: "There are two aspects of the matter. First, in our opinion, during .....

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the Central Excise Act. Therefore, the amended provisions would apply and the appeal of the appellant before the CESTAT would not be maintainable in absence of deposit of an amount equivalent to 7.5% of the confirmed amount of duty liability. The other aspect of the matter is that if the argument of the learned counsel for the petitioner is accepted then he is required to pre-deposit 100% of the excise duty levied on him as he has not filed any waiver application under the old provision before .....

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Rajasthan High Court. In Paramount Security v. Union of India [W.P.No.12232 of 2015], one Division Bench of the Rajasthan High Court recorded an opinion that the effect of the amendment cannot be restricted only to those appeals which are filed after 06.8.2014. The Court proceeded on the footing that the amendment was actually beneficial to the assessee and hence, the Bench held that to restrict such a benefit only to one category of assessees would be violative of Article 14. The Court held th .....

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mbay v. Supreme General Films [1960 (3) SCR 640], a suit that was decreed on 22.7.1954 was taken on appeal to the High Court on 04.9.1954. The Court fee on the appeal was paid under the Court Fees (Bombay Amendment) Act, 1954 that had come into force on 01.4.1954. The appellant claimed a refund of excess Court fee on the ground that the suit was instituted on 16.4.1953 and hence, the Court fee as prevailing at that time alone was payable even on the appeal, despite the fact that the decree itsel .....

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eme General Films was followed by the Supreme Court in Ramesh Singh v. Cinta Devi [1996 (3) SCC 142]. In Ramesh Singh, an application for compensation was filed on 23.12.1988 in respect of an accident that took place on 27.5.1988. But, by then, the Motor Vehicles Act, 1988 came into force repealing 1939 Act. The claim for compensation was allowed on 29.6.1992 and an appeal was filed on 25.9.1992. A Division Bench of the High Court rejected the appeal on the ground that a pre-deposit as required .....

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in Hardeodas Jagannath v. State of Assam [AIR 1970 SC 724]. The said case arose out of the Assam Sales Tax Act, 1947, as amended by Act 6 of 1958. Under the said Act, an appeal against an order of assessment or penalty cannot be entertained by the authority unless the amount of tax assessed or penalty levied had been paid. The provisions of the Assam Sales Tax Act, 1947, were extended to the Administered Area in Shillong under Section 4 of the Extra Provincial Jurisdiction Act, 1947, by a notif .....

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proviso requiring the assessee to pay only the admitted amount of tax as a pre-condition for entertaining the appeal. But, the Supreme Court held that when the orders of assessment were completed only after the coming into force of the amendment and when the appeals themselves were filed only after the amendment, it is not correct to say that the amended Act had been given retrospective effect. 49. Though the decision in Hardeodas Jagannath did not go into greater details on questions relating t .....

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atti Veeraya on the one hand and the Constitution Bench in Hardeodas Jagannath was brought to the notice of a Full Bench of the Punjab and Haryana High Court in Indo Swiss Times Ltd. v. Umrao [1981 PLR 335]. The Full Bench of the Punjab High Court held that in the event of two directly conflicting judgments of the Supreme Court and of equal authority, the judgment which appears to lay down the law more elaborately and accurately is required to be followed. Therefore, the Full Bench followed the .....

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the right of appeal vested in the assessee and that the same was saved in terms of Section 4 of the General Clauses Act, 1898. 52. For arriving at the above conclusion, the Punjab and Haryana High Court relied upon the decision of the Supreme Court in Vittalbhai Naranbhai Patel's case [AIR 1967 SC 344], to the effect that the relevant date to find out the applicability of the governing law would be the date on which the cause of action arose. 53. Despite all the conflicts, sometimes latent, .....

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Therefore, it is well settled that the right of appeal is a creature of statute and the legislature is well within its competence to impose conditions for the exercise of such a right subject only to the restriction that the conditions so imposed are not so onerous as to amount to unreasonable restrictions rendering the right almost illusory. 55. Therefore, the question of prime importance that arises is, as to whether a switch-over from a regime where the deposit of the entire duty was mandator .....

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quot;The decisions of the Bombay and Calcutta High Courts earlier referred to (Elora - AIR 1980 Bom. 162 and Chatter Singh - AIR 1984 Cal. 283) have upheld the validity of a provision banning the entertainment of an appeal altogether where the taxes are not paid. However, the Supreme Court decisions in Anant Mills [1975 (2) SCC 175], Vijay Prakash Mehta [1988 (4) SCC 402] and A.S.Bava [AIR 1968 SC 13] had occasion to consider only the vires of a milder provision which permitted the Appellate Aut .....

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-deposit conditions that are capable of being imposed for entertaining a statutory appeal. In a graded scale they will be as follows: (i) A condition which makes it mandatory for the assessee to deposit the whole of the disputed tax or penalty or both can be said to be the most onerous; (ii) A condition that makes it mandatory for the assessee to deposit the entire amount of disputed tax, penalty or both with a discretion to the Appellate Authority to grant waiver of the whole or part of the amo .....

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e assessee to make a pre-deposit of 7.5% could be placed in between the categories narrated in (i) and (ii) or in between categories narrated in (ii) and (iii) above. If this condition falls in between categories (i) and (ii), it is more onerous than the existing condition and hence, cannot take retrospective effect. If this condition falls in between categories (ii) and (iii), it is less onerous than the existing condition and hence, the question whether it is retrospective or not will not even .....

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the said Rules entitled a manufacturer to withdraw the Modvat credit at any time without there being any limitation. But, by an amendment which came into effect on 29.6.1995, the second proviso to Rule 57-G was introduced. By the new proviso, a period of limitation of six months was introduced for a manufacturer to take credit. When it was argued that the amendment took away a vested right, the Supreme Court distinguished its earlier decision in Eicher Motors Ltd. v. Union of India [1999 (106) E .....

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placed by another condition, the same cannot be said to be retrospective, unless it is definitely shown that the amended condition is more onerous than the unamended condition. When the unamended condition gave only a chance or hope for an assessee to get a total waiver at the discretion of the Appellate Authority, the same cannot be equated to a vested right. A mere chance of convincing the Appellate Authority to exercise the discretion for the grant of a total waiver is no vested right. The am .....

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re are two provisos to the amended Section 35-F. The first proviso states that the amount required to be deposited under the new Section, shall not exceed ₹ 10 Crores. The second proviso states that the provisions of this Section shall not apply to the stay applications and appeals pending before any Appellate Authority prior to the commencement of Finance Act 2 of 2014. 62. Taking clue from the second proviso, the Allahabad High Court held in para 20 of its decision in Ganesh Yadav that t .....

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r the writ petitioner that a proviso carving out an exception, need not necessarily be an indicator that what is not covered by the exception, will fall within the general Rule. In support of such a contention and in order to drive home the manner in which a proviso is to be interpreted, the learned Senior Counsel relied upon certain decisions which we shall now consider. 64. In Madras and Southern Mahratta Railway Company Limited vs. Bezwada Municipality [AIR 1944 Privy Council, 74], the Judici .....

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rishna Warriar [AIR 1965 SC 59], the Supreme Court held that it is not always an inflexible rule of construction that a proviso in a statute should always be read as a limitation upon the effect of the main enactment. Though generally the presumption would be that but for the proviso the enacting part of the Section would have included the subject matter of the proviso, in some cases the clear language of the substantive provision as well as the proviso may indicate that both of them were substa .....

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lause, inflated by the proviso, sins against the fundamental rule of construction. In para 43 the Court summarized the four different purposes that may be served by a proviso, as follows:- "43. We need not multiply authorities after authorities on this point because the legal position seems to be clearly and manifestly well established. To sum up, a proviso may serve four different purposes: (1) qualifying or excepting certain provisions from the main enactment; (2) it may entirely change t .....

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s. State of Kerala [AIR 2003 SC 4006], the Supreme Court quoted with approval the opinion rendered by the Privy Council in Jinnings vs. Kelly 1940 AC 206, to the effect that a proviso cannot be used to import into the enacting part, something which is not there. But where the enacting part is susceptible to several possible meanings, it may be controlled by the proviso. 68. In the light of the principles of law laid down in the above decisions, it is contended by Mr.C.Natarajan, learned Senior C .....

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s cases that would not fall within the purview of the substantive provision. While interpreting the substantive provision, the Allahabad High Court drew inspiration from the second proviso to come to the conclusion that the substantive provision was capable of interpretation only one way. Otherwise, there could have been no necessity for the second proviso at all. 70. In any case, on the first contention of the writ petitioner, we have independently come to a conclusion that even the substantive .....

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third contention of the learned Senior Counsel for the writ petitioner is that the High Courts of Andhra Pradesh and Telungana and Kerala have taken a view that the amendment is prospective in nature and that it would apply only to proceedings originally initiated on or after 6.8.2014. 72. The decision of the High Court of Andhra Pradesh relied upon by the learned Senior Counsel in K.Rama Mohanarao is only a prima facie view. We have already analysed this decision while dealing with the first co .....

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(3-A) of Section 85 of the Finance Act, 1994 and the interpretation given to the same by this Court in Winwind Power Energy Private Limited, does not appeal to us. The curtailment of a period of limitation, by way of amendment, takes away a vested right of appeal. An amendment that takes away the right of appeal stands on a different footing from an amendment that merely changes the condition precedent for the filing of the appeal. 74. Mr.Joseph Prabhakar, learned counsel, also advanced argumen .....

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1.2 of the Circular dated 16.9.2014 created some confusion, the second Circular dated 5.1.2015 was issued. Para 4 of the second Circular reads as follows:- "4. Para 1.2 of the Circular ibid stated that amended provisions would apply to appeals filed after 6th of August, 2014. An Act of Parliament comes in to effect on the date it received the assent of the President of India. Hence, the amended provisions regarding filing of appeal along with stipulated percentage of pre-deposit shall apply .....

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the amended provisions will not apply to an order in original passed in pursuance of the same, even if such an order is passed after 6.8.2014. The above Circular does not support this contention of the petitioner. 77. Lastly it is contended by Mr.Joseph Prabhakar that the assessees do not stand to gain by fighting on pre-deposit condition. If they lose the battle after exhausting all avenues, the assessees are obliged to pay the amount due, together with interest at a higher rate. Therefore, it .....

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