2009 (3) TMI 655 - AT - Central Excise

Summary

Issues:
1. Limitation period for issuance of show cause notice under Section 11A of the Central Excise Act, 1944.

Analysis:

Issue 1: Limitation period for issuance of show cause notice under Section 11A

The appeal in this case arose from an Order-in-Appeal passed by the Commissioner (Appeals), Customs and Central Excise, Meerut-I. The main contention raised in the appeal was regarding the issuance of a show cause notice dated 20th March, 1998, beyond the limitation period prescribed under Section 11A of the Central Excise Act, 1944. The notice related to the period from July 1997 to September 1997.

The advocate for the appellant argued that the notice was issued beyond the prescribed period of limitation as the Department was aware of the classification and benefits claimed by the appellants when the required declarations were filed. On the other hand, the Department contended that the notice was issued within the six-month period as required by Section 11A. The show cause notice was issued on 20th March 1998 for the period from July 1997 to September 1997, which falls beyond six months prior to the notice.

However, Section 11A(3)(ii)(a) clarifies that the relevant date for issuing a show cause notice is within six months from the date of filing the periodical return when required by law. In this case, the appellants had filed the necessary returns, and the notice was issued within six months from the date of filing such returns. The authorities had duly considered this aspect, and the notice was found to be within the statutory limitation period.

The contention that the demand for short levy could not be made after the expiry of six months was dismissed as Section 11A empowers authorities to issue notices for recovery of short levy and imposition of penalties within the prescribed timeframe. The judgment also highlighted the definition of "relevant date" under Section 11A(3)(ii)(a) and emphasized that the notice was issued in accordance with the statutory provisions.

The appellant referred to a Supreme Court case but the Tribunal noted that the case was not relevant to the issue of the "relevant date" under Section 11A. Since no other grounds were raised in the appeal, it was dismissed.

In conclusion, the Tribunal upheld the validity of the show cause notice issued within the statutory limitation period and dismissed the appeal.

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