Petitioner granted fresh application under Customs Act, delays not their fault. Exclusion of lost time.

The court allowed the petitioner to file a fresh application under section 127C of the Customs Act, setting aside the abatement due to delays not attributable to the petitioner. It emphasized that provisions should not penalize applicants for delays caused by the Commission or arbitrary cut-off dates. The court directed the exclusion of time lost until the filing of the new application and requested the Settlement Commission to expedite the disposal. The judgment was later upheld by the Supreme Court.

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Issues:
Impugning order passed by Settlement Commission under Customs Act, 1962 - Abatement of application under section 127C due to delay in disposal - Department's challenge creating impediment - Petitioner seeking permission to file application afresh - Interpretation of provisions punishing applicant for Commission's delay - Reference to judgment in Star Television News Ltd. Vs. Union of India - Arbitrariness of cut-off date - Upholding constitutionality of provisions - Excluding time lost from impugned order till filing of application - Requesting Settlement Commission to expedite disposal.

Analysis:

1. The petitioner approached the court to challenge an order by the Settlement Commission, which concluded that the application filed under section 127C of the Customs Act abated due to not being disposed of before the cut-off date. The petitioner argued that it diligently pursued the application, and the department's actions created obstacles in the proceedings. The court found that the petitioner should be allowed to file a fresh application, emphasizing that provisions should not penalize the applicant for delays not attributable to them.

2. The court referred to the judgment in Star Television News Ltd. Vs. Union of India, highlighting that provisions should not punish applicants for delays caused by the Commission. The court noted that the cut-off date was arbitrary and could be read down to avoid being deemed unconstitutional. It emphasized that only applications delayed due to the applicant's fault should abate, and the Settlement Commission should assess if delays were attributable to the applicant.

3. The court directed the exclusion of time lost from the impugned order until the filing of the new application. It requested the Settlement Commission to expedite the disposal of the application in the first hearing. The petition was disposed of, clarifying that no observations were made on the merits of the case. The judgment was later upheld by the Supreme Court in Union of India Vs. Star Television News Ltd.

This detailed analysis covers the issues raised in the legal judgment, providing a comprehensive overview of the court's reasoning and decisions regarding the abatement of the application, the actions of the department, the interpretation of provisions, and the direction given to the Settlement Commission for expedited disposal.

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