SCA/13059/2000 1/3 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 13059 of 2000 For Approval and Signature: HONOURABLE MR.JUSTICE D.A.MEHTA HONOURABLE MR.JUSTICE H.B.ANTANI ========================================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ========================================================= SHREE KRISHNA POLYESTER LIMITED & 1 - Petitioner(s) Versus UNION OF INDIA & 1 - Respondent(s) ========================================================= Appearance : MR RAKESH GUPTA AND MS. POOJA GUPTA FOR M/S TRIVEDI & GUPTA for Petitioner(s) : 1 - 2. MR HRIDAY BUCH, CGC for Respondents. RULE SERVED BY DS for Respondent(s) : 2, ========================================================= CORAM : HONOURABLE MR.JUSTICE D.A.MEHTA and HONOURABLE MR.JUSTICE H.B.ANTANI Date : 20/06/2008 ORAL JUDGMENT (Per : HONOURABLE MR.JUSTICE D.A.MEHTA) 1 This petition challenges Show Cause Notice dated SCA/13059/2000 2/3 JUDGMENT 14.07.1999 (Annexure-A) issued to the petitioner company under the provisions of Rule 57U(2) of the Central Excise Rules, 1944. It is the case of the petitioner company that as the said Rule has been substituted with effect from 31.03.2000 by virtue of Notification No.27/00 (NT) without providing for any saving clause in relation to proceedings pending on the date of Notification the Show Cause Notice be declared as inoperative 2 Heard the learned Advocate for the petitioner. It was submitted that the petition was admitted on 21.12.2000 by virtue of the law laid down by the Apex Court in the case of Kolhapur Canesugar Works Limited Vs. Union of India, 2000 (119) ELT 257. 3 However, during course of arguments it has come to the notice of this Court that by virtue of Finance Act, 2001, being Act 14 of 2001, by virtue of section 131 of the said Finance Act, provisions of section 38A have been inserted in the Central Excise Act, 1944 with retrospective effect from 28.02.1944. It was further noticed that by virtue of section 132 of the Finance Act, 2001 validation of action taken has been provided for. 4 In light of the aforesaid position in law, the SCA/13059/2000 3/3 JUDGMENT challenge raised by the petitioner does not survive. However, as the petitioner has approached at the stage of Show Cause Notice and the further proceedings were stayed by this Court, it would be in the fitness of things if the following directions are issued : The petitioner is directed to tender written reply to the Show Cause Notice within a period of one month from today. Upon such reply being tendered, the respondent authority shall proceed to decide the Show Cause Notice in accordance with law after giving proper opportunity to the petitioner. 5 Subject to the aforesaid directions the petition is rejected. Rule discharged. Interim relief stands vacated. There shall be no order as to costs. (D.A.Mehta, J.) (H.B.Antani,J.) M.M.BHATT