FM empowers HC with retrospective effect – Impact of SC judgment nullified

By TIOL News Service

NEW DELHI, JULY 06, 2009: SUPREME Court's Larger Bench judgement in the case of Commissioner of Customs & Central Excise Vs. Hongo India Pvt. Ltd. [2009-TIOL-48-SC-CX-LB] held that the High Court has no power to condone the delay in filing the “reference application” filed by the Commissioner under unamended Section 35H(1) of the Central Excise Act, 1944 beyond the prescribed period of 180 days.

Board was quick in issuing Circular No 888/8/2009- CX and directed the field formations that Appeal under the present Section 35G / Section 35H of the Central Excise Act must be filed within the stipulated period of 180 days. Similar directions were also put in place for appeals filed under Section 130 and Section 130A of the Customs Act, 1962.

All this could be history if the Finance Bill goes through (and it should!!).

Clause 86 of the Bill seeks to amend section 130 of the Customs Act 1962 retrospectively with effect from 1st day of July, 2003 so as to make express provision empowering the High Court to condone the delay in filing of appeals beyond the period of one hundred and eighty days.

The amendment shall apply to all the appeals and review petition including the application or appeal or review petition, as the case may be, pending before Supreme Court or High Court.

The retrospective juggernaut rolls on.