2008 (5) TMI 666 - HC - Central Excise

Summary

Issues involved: Claim of modvat credit, show cause notice validity, extended period of limitation under Section 11A of Central Excise Act.

The judgment pertains to a case where the Respondent had claimed modvat credit on M.S. scrap in June and August 1995. The Revenue issued a show cause notice to the Respondent on 13th May 1999, three years after the conclusion of investigations, without invoking the extended period of limitation under Section 11A of the Central Excise Act.

The Court noted that the show cause notice did not mention the invocation of the extended period of limitation. Relying on a previous decision in the case of Gammon India Ltd. v. Commissioner of Central Excise, Goa, the Tribunal concluded that the show cause notice was time-barred. The Revenue's appeal to the Supreme Court was unsuccessful as the Court declined to interfere with the Tribunal's decision on the question of limitation.

Comparing the present case to a previous case where the show cause notice was issued two years after completion of the enquiry, it was highlighted that in this instance, the notice was issued three years after the completion of the enquiry, clearly indicating that it was barred by time. The Court found no substantial question of law to consider and dismissed the case.