2008 (4) TMI 651 - AT - Central Excise

Demand - Limitation - Invocation of extended period of limitation - Held that - in view of the clear finding of absence of male fide, set aside the impugned order and allow the appeal on the ground of limitation also, without going to the merits of the case.

Summary

Issues: Limitation period for appeal due to absence of deliberate intention to evade payment of duty.

The judgment by the Appellate Tribunal CESTAT, Ahmedabad, involved a case where a show cause notice was issued beyond the normal period of limitation for the period 1986-87. The adjudicating authority had noted the absence of deliberate intention to evade payment of duty by the appellant, a Government of India undertaking, and hence did not impose any penalty. The Revenue did not appeal against this part of the order. The appellant argued that since there was no mala fide intention, the longer period of limitation should not have been invoked. Citing a precedent, the Tribunal held that when no penalty is imposed due to lack of intention to evade duty, the same criteria should apply for limitation purposes. Thus, based on the absence of mala fide intention and following the precedent, the Tribunal set aside the impugned order and allowed the appeal solely on the ground of limitation without delving into the merits of the case.

---