Pre-amended excise provision did not permit confiscation or penalty, and no referable question of law arose.

Under the pre-amended Section 3(3) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957, confiscation and penalty were not available in relation to demands of additional duty because the earlier text referred only to refund and exemption. The 1994 amendment expressly introduced offence and penalty language, and it was treated as a substantive enlargement rather than a merely declaratory change. On that basis, the pre-amended provision could not be read as already containing those liabilities, and no substantial question of law arose for reference to the High Court. The request for reference was rejected.

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Issues: Whether, under the pre-amended Section 3(3) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957, provisions for confiscation and penalty could be applied in relation to demands of additional duty, and whether any substantial question of law arose for reference to the High Court.

Analysis: The amendment made in 1994 to Section 3(3) expressly introduced reference to offence and penalty, whereas the earlier provision referred only to refund and exemption. The distinction showed that the power to impose confiscation and penalty was not available under the pre-amended text. The subsequent amendment was not treated as merely declaratory so as to negate that conclusion. On that basis, no reason was found to doubt the view that confiscation and penalty were not attracted under the earlier provision. The matter also did not disclose any issue of law warranting a reference.

Conclusion: The request for reference to the High Court was rejected.

Final Conclusion: The Department failed to establish any referable question of law, and the order left undisturbed the view that confiscation and penalty were not available under the pre-amended statutory scheme.

Ratio Decidendi: Where an amendment materially enlarges a fiscal provision to include offence and penalty, the pre-amended provision is not to be construed as already containing those liabilities unless the amendment is clearly only clarificatory.

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