1987 (8) TMI 254 - AT - Central Excise

Summary

Issues:
Interpretation of notification providing concessional rate of duty for matches, applicability of Section 52 of the Finance Act, 1982, challenge based on limitation under Section 11A of the Central Excises and Salt Act.

Analysis:
The case involved a dispute regarding the concessional rate of duty on matches cleared by a factory. The Central Government's notification dated 23-2-1982 provided for a reduced duty rate subject to certain conditions. The Superintendent of Central Excise reviewed past assessments and demanded a differential duty amount from the factory for the period from April 1981 to March 1982. The factory contended that the demand was not valid due to the applicability of Section 11A of the Central Excises and Salt Act, which sets a limitation period of six months for such demands.

The Appellate Tribunal considered the arguments presented, including the contention that the limitation under Section 11A should be calculated from the date the duty became payable as per the notification. Reference was made to a similar case before the Delhi High Court, which discussed the retrospective effect of provisions like Section 52 of the Finance Act, 1982. The Tribunal highlighted that the limitation period under Section 11A must be strictly followed, and the demand notice issued beyond six months from the date of payment of duty is time-barred.

The Tribunal emphasized that the demand for the differential duty for the period beyond six months preceding the show cause notice was barred by limitation. The decision partially favored the factory, setting aside the demand for the period outside the limitation period. The Assistant Collector was tasked with quantifying the enforceable differential duty amount for the applicable period.

In conclusion, the appeal was partly allowed, granting relief to the factory based on the limitation prescribed under Section 11A of the Central Excises and Salt Act. The Tribunal's decision upheld the importance of adhering to statutory limitation periods in excise duty matters, ensuring fairness and legal compliance in duty assessments.