Reference on penalty and fine in lieu of confiscation allowed for authoritative ruling on excise goods under special importance legislation

The Tribunal treated the proposed question as fit for reference on the legality of penalty and fine in lieu of confiscation imposed on goods chargeable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957. It noted the departmental request for reconsideration in light of contrary High Court views and accepted that the question required authoritative determination. The reference application was accordingly allowed, and the question of law was referred for opinion to the High Court.

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Issues: Whether the reference application under Section 35G(1) of the Central Excise Act, 1944 should be allowed for opinion on the legality of penalty and fine in lieu of confiscation imposed in relation to goods chargeable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957.

Analysis: The Tribunal noted the earlier view taken in the appeals and the departmental contention that the question required reconsideration in light of contrary High Court views. It treated the proposed question as fit for reference and, following the departmental stand and the cited High Court order, directed the question to be referred to the Gujarat High Court.

Outcome: The reference application was allowed and the question of law was referred to the High Court.

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