2008 (4) TMI 319 - SCH - Central Excise

Duty Demand - Extended period of Limitation - tribunal held that since in the earlier show cause notice department had sought extension of time, which show cause notice was duly replied to by the assessee, it was not open to the Department to seek extended period of limitation by issuance of subsequent show cause notice - Held that - two show cause notices relate to different subjects. The former relates to interest on advances, the latter show cause notice is concerning the loading of the price of soap noodles - impugned order is set aside. The matter is remitted to the tribunal for fresh consideration - Decided in favour Revenue.

Summary

The Supreme Court of India ruled that the Department could not invoke an extended period of limitation for loading the price of soap noodles with value by-products due to a previous show cause notice. The matter was remitted to the tribunal for fresh consideration. The appeal was allowed with no order as to costs.