2008 (1) TMI 792 - AT - Central Excise

Validity of SCN - Time Limitation - SCN issued after the period of six months from the date of search and even after completion of the investigations - Held that - The Hon ble Supreme Court in the case of C.C.E, Chandigarh-II v. Bhalla Enterprises 2004 (9) TMI 109 - SUPREME COURT has held that the limitation for issue of show cause notice is to run from the date of search and seizure of documents or from date of completion of investigation - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Whether the show cause notice issued by the Commissioner (Appeals) was time-barred.
2. Whether the limitation for issuing a show cause notice runs from the date of search and seizure of documents or from the date of completion of investigation.

Analysis:

1. The main issue in this case was whether the show cause notice issued by the Commissioner (Appeals) was time-barred. The Appellate Tribunal noted that the appellate authority had held the show cause notice issued on 9-7-2004 as barred by limitation. The Commissioner (Appeals) found that there was a significant delay in issuing the notice after the department became aware of the evasion, leading to the conclusion that the demand notice issued on 9-7-04 was time-barred. The Tribunal concurred with the Commissioner (Appeals) and rejected the revenue's appeal based on the finding that the demand notice was hopelessly time-barred.

2. The second issue revolved around the limitation for issuing a show cause notice, specifically whether it runs from the date of search and seizure of documents or from the date of completion of investigation. The Tribunal referred to the decision of the Hon'ble Supreme Court in the case of C.C.E, Chandigarh-II v. Bhalla Enterprises, where it was held that the limitation for issuing a show cause notice starts from the date of search and seizure of documents or from the date of completion of investigation. The Tribunal also cited other decisions of the Tribunal, such as Shree Renuka Sugars Ltd. v. C.C.E., Bangalore, Jetex Caburettors Pvt. Ltd. v. C.C.E., Vadodara, and Rivaa Textile Inds. Ltd. v. C.C.E & Cus., Surat-I, which supported the same view. Based on this legal precedent, the Tribunal found no infirmity in the Commissioner (Appeals)'s decision regarding the limitation issue and rejected the revenue's appeal accordingly.

In conclusion, the Appellate Tribunal upheld the decision of the Commissioner (Appeals) that the show cause notice was time-barred and rejected the revenue's appeal based on established legal principles regarding the limitation for issuing a show cause notice.