Appeal Allowed as Proceedings under Omitted Rule Lapsed

The Appellate Tribunal CEGAT, Mumbai held that proceedings under an omitted rule of the Central Excise Rules could not continue. The Supreme Court in Kolhapur Canesugar Works Ltd. v. Union of India supported this, ruling that proceedings under an omitted rule would lapse without a saving provision in the amending Act. Consequently, the show-cause notice issued to the appellant lapsed upon the omission of Rule 10, leading to the appeal being allowed and the impugned order set aside.

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The judgment by the Appellate Tribunal CEGAT, Mumbai in 2000 (11) TMI 891 stated that proceedings under Rule 10 of the Central Excise Rules, which was omitted in 1980, could not continue. The Supreme Court ruling in Kolhapur Canesugar Works Ltd. v. Union of India supported this, stating that proceedings under an omitted rule would lapse. As there was no saving provision in the amending Act, the show-cause notice issued to the appellant lapsed on the omission of Rule 10. The appeal was allowed, and the impugned order was set aside.

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