Whether provisions of General Clause Act applicable for interpreting provisions of Customs Act?

PJ/Case Law/2013-14/2005

Case:-COMMISSIONER OF CUSTOMS, KANDALA VERSUS PUJA STEEL

Citation:- 2014(299) E.L.T. 497(Tri.-Ahmd.)

Brief Facts:-The respondent filed a refund claim in respect of duty paid on 2-7-2009. The claim was rejected by the original adjudicating authority on the ground that the same was time-barred, i.e. the refund which related to the duty paid on 2-7-2009. On an appeal filed by the Respondents on the impugned order, a view was taken that the claim was in time, in view of the provisions relating to ‘commencement and termination of time’in Sec. 9 of the General Clauses Act, 1897.

Appellant contentions:- Nobody is present on behalf of the revenue. The revenue is in appeal against the decision on the ground that the Commissioner could not have relied upon the provisions of General Clauses Act for refund under Notification no. 102/2007.

Reasoning of judgment:-Ongoing through the records, it is found that according to the Notification no. 102/2007, the importer is required to file the claim for refund before expiry of one year from the date of payment of additional duty of customs. The notification does not explain the exact meaning of the word “from”. Naturally a question would arise, whether for counting one year from the date of payment of duty, the day of payment should be included or not? In such situation, the provisions of Sec. 9 of General Clauses Act, 1897 has been correctly applied in view of the manner in which Sec. 9 has been enacted. For ready reference, Sec. 9 of GCA is reproduced below:

“9. Commencement and termination of time: (1) In any (Central Act) or regulation made after the commencement of this Act, it shall be sufficient, for the purpose of excluding the first in a series of days or any other period of time, to use the word “from”, and, for the purpose of including the last in a series of days or any other period of time, to use the word “to”.

(2) This section applies also to all (Central Act) made after the third day of January, 1968, and to all Regulations made on or after the fourteenth day of January, 1887.”

It can be seen that in any of the Central Act or Regulations, if the word “from” is used, the day on which that event has taken place has to be excluded. Because of this reason, nowhere in Central Acts or Notifications, when the words “from” and “to” are used, the meaning thereof is explained. In the circumstances, impugned order is in accordance with the law and, therefore, the appeal filed by the revenue has no merit and is rejected.

Decision:-Appeal rejected.

Comment:- The essence of this case that the provisions of General Clauses Act are applicable for determining the meaning of certain phrases of other Acts also. In the instant case, for determining the time limit to file refund claim, whether the day of payment would be included in counting or not was ascertained by resorting to the provisions of GCA wherein it has been specified that wherever the term “from” is used, the first day should be excluded. Accordingly, for determining one year from the date of payment of duty, the day of payment is to be excluded.

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PJ/Case Law/2013-14/2005

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