SHREE KRISHNA POLYESTER LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition challenges Show Cause Notice dated 14 -7 -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 -3 -2000 by virtue of Notification No. 27/00 (N.T.) 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 V/s. 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 -2 -1944. It was further noticed that by virtue of Section 132 of the Finance Act, 2001 validation of action taken has been provided for.