Statutory limitation and prospective classification changes cannot be curtailed by consent order or retrospective reopening

A consent order cannot curtail a statutory plea of limitation or authorise retrospective reopening of an approved classification list. The order was treated as suffering from an error apparent on the face of the record because, once the amended classification lists were directed to be finalised in accordance with law after notice, the petitioners remained entitled to raise limitation under Section 11A of the Central Excises and Salt Act, 1944. Any fresh change in classification could be made only prospectively, through the prescribed procedure and after proper show cause notice.

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Issues: Whether the consent order dated 25-4-1992 suffered from an error apparent on the face of the record, and whether the petitioners could be denied the plea of limitation while permitting the classification dispute to be reopened only prospectively.

Analysis: The consent order had the practical effect of closing the petitioners out from raising limitation under Section 11A of the Central Excises and Salt Act, 1944, although the classification dispute was still open to be examined afresh. The Court held that once the amended classification lists were directed to be finalised in accordance with law after notice, any further qualification that prevented the petitioners from pleading limitation was unjustified. The earlier approval of the classification list could not be whittled down by retrospective reopening, and the Department could proceed only by following the prescribed procedure and after giving a proper show cause notice.

Conclusion: The consent order was held to involve an error apparent on the face of the record, and the petitioners were entitled to raise the plea of limitation. Any fresh change in classification could be made only prospectively and after due notice.

Final Conclusion: The review was allowed, the approved classification remained effective, and the Department was left free to proceed afresh only in accordance with law and on a prospective basis.

Ratio Decidendi: A consent order cannot validly curtail a statutory plea such as limitation or permit retrospective alteration of an approved classification otherwise than in accordance with the prescribed procedure and natural justice.

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