1996 (11) TMI 82 - SC - Central Excise

Summary

Issues:
1. Jurisdiction under Section 35A of the Central Excises and Salt Act, 1944.
2. Barred by limitation - revision of earlier decision dated 7-4-1971.
3. Liability to pay duty for the period between 16-3-1976 and 2-6-1977.

Jurisdiction under Section 35A:
The appellant received a show-cause notice alleging goods were cleared without duty assessment. The Central Board sought clarification on the decision or order to be revised. The notice did not specify a decision but referred to the officer(s) permitting clearance without duty assessment. The Collector of Central Excise had earlier held the goods were not liable to duty on 7-4-1971. The notice was time-barred if intended to revise the 1971 decision. The duty claimed was for a period after the 1971 order, and the revision was based on the 1973 notice, not the subsequent amendment. The Supreme Court held that the invocation of jurisdiction under Section 35A was not justified due to lack of specificity and being time-barred.

Barred by Limitation - Revision of Earlier Decision:
The appellant argued that the show-cause notice was barred by limitation as it did not specify the decision or order to be revised. The notice referred to the officer(s) permitting clearance without duty assessment, which was based on the 1971 decision that the goods were not liable to duty. The Court found that if the notice was intended to revise the 1971 decision, it was clearly time-barred. Additionally, the duty claimed was for a period after the 1971 order, and the revision was based on the 1973 notice, not the subsequent amendment. Therefore, the Court held that the exercise of jurisdiction under Section 35A was not justified.

Liability to Pay Duty for the Period 16-3-1976 to 2-6-1977:
The Supreme Court allowed the appeal and set aside the orders dated 13-4-1976 and 30-1-1979 to the extent of holding the appellant liable to pay duty for the period between 16-3-1976 and 2-6-1977. The Court made no order as to costs in this matter.