2005 (10) TMI 557 - AT - Central Excise

Summary

Issues: Time bar for issuing show cause notice based on delay in investigation findings.

Analysis:
The judgment by the Appellate Tribunal CESTAT Bangalore involved a case where the appellant was issued a show cause notice regarding a shortage of raw materials found during a departmental investigation in 1999 but received the notice in 2004, after a lapse of four years. The appellant contended that the Department was already aware of the facts from the investigation in 1999. The Tribunal considered previous cases like CCE, Chandigarh vs. Raja Ram Com Products and CCE, Indore vs. Syncom Formulation (I) Ltd., where delays in issuing show cause notices were not accepted due to the Department's prior knowledge of the facts. The Tribunal agreed with the appellant that the delay in issuing the notice made the demand time-barred. Therefore, the appeal was allowed based on the time bar issue, granting relief to the appellant. The judgment was pronounced and dictated in open court by the Tribunal members S.L. Peeran and T.K. Jayaraman.