Retrospective condonation power under the Central Excise Act validated delay in a reference application and restored merits consideration.

Retrospective insertion of section 35H(2A) of the Central Excise Act, 1944 empowered the High Court to condone delay in filing a Reference Application under section 35H(1), and the provision had to be treated as operative from the date it was stated to take effect. The High Court's view that it lacked power to condone delay was therefore incorrect. The delay in the reference application was held condonable, the impugned order was set aside, and the matter was remitted to the High Court for decision on merits.

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Issues: Whether the delay in filing the Reference Application under section 35H(1) of the Central Excise Act, 1944 could be condoned in view of the retrospectively inserted section 35H(2A) conferring such power on the High Court.

Analysis: The Reference Application had been filed in 2000 and the High Court had dismissed it as time-barred on the footing that it lacked power to condone delay. The inserted sub-section (2A), introduced retrospectively with effect from 1-7-2003, expressly empowered the High Court to condone delay. By reason of the retrospective insertion, the provision had to be treated as having been in force when the application was filed and when the High Court passed the impugned order.

Conclusion: The delay was condonable and the High Court's contrary view was unsustainable. The appeal was allowed, the impugned order was set aside, and the matter was remitted to the High Court for decision on merits.

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