Retrospective fiscal liability barred where amended customs duty provision could not apply to a prior show cause notice.

Delay in filing the appeal was condoned because the lapse was linked to prior proceedings before the High Court and the direction to pursue the proper appellate remedy. On the substantive issue, liability to pay duty on pilfered cargo could not be fastened on the custodian under the amended section 45 of the Customs Act where the show cause notice had been issued before the amendment. The later 1995 amendment creating that duty liability was held not to operate retrospectively. The appeal was allowed, the impugned order was set aside, and consequential relief followed.

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Issues: (i) Whether the delay in filing the appeal should be condoned. (ii) Whether liability to pay duty on pilfered cargo could be fastened on the custodian under the amended section 45 of the Customs Act, 1962 for a show cause notice issued prior to the amendment.

Issue (i): Whether the delay in filing the appeal should be condoned.

Analysis: The delay was attributed to repeated proceedings before the High Court and the matter's procedural course. The last order of the High Court directed the appellants to pursue the appropriate appellate remedy.

Conclusion: The delay was condoned.

Issue (ii): Whether liability to pay duty on pilfered cargo could be fastened on the custodian under the amended section 45 of the Customs Act, 1962 for a show cause notice issued prior to the amendment.

Analysis: The provision in force on the date of the show cause notice only required the trustee to keep records and ensure that cargo was not removed without Customs permission. The later amendment in 1995, which made the trustee liable to pay duty on pilfered cargo, was held incapable of retrospective application.

Conclusion: The amended liability could not be applied retrospectively, and the appeal succeeded on merits.

Final Conclusion: The appeal was allowed, the impugned order was set aside, and consequential relief followed.

Ratio Decidendi: A substantive fiscal liability created by a later amendment cannot be applied retrospectively to events governed by the unamended provision.

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