1991 (12) TMI 183 - AT - Central Excise

Summary

Issues:
1. Whether the show cause notice issued by the Central Government to review the Appellate Collector's order is time-barred.
2. Determining which proviso of the Central Excises & Salt Act, 1944 applies to the issuance of show cause notices for revising assessable values.
3. The impact of the Tribunal's judgment on the applicability of the time limit for issuing show cause notices.

Analysis:

Issue 1:
The respondent raised a preliminary objection regarding the timeliness of the show cause notice issued by the Central Government to review the Appellate Collector's order. The notice was issued beyond the six-month time limit specified in the third proviso to erstwhile Section 36(2) of the Central Excises & Salt Act, 1944.

Issue 2:
The appellant argued that the show cause notice did not seek to levy duty or demand short levy but aimed to revise the assessable value of the goods. The appellant contended that the second proviso to Section 36(2) providing a one-year time limit for issuing show cause notices should apply in this case. The appellant relied on judicial precedents to support this argument, including a judgment from the Allahabad High Court and a recent Tribunal judgment.

Issue 3:
The respondent countered by citing a series of Tribunal judgments and High Court decisions, emphasizing that the show cause notice effectively demanded duty from the respondents, making the third proviso to erstwhile Section 36(2) applicable. The Tribunal, after considering arguments from both sides, agreed with the respondent that the show cause notice was indeed time-barred under the third proviso.

In the final analysis, the Tribunal dismissed the appeal, upholding the time-barred status of the show cause notice and emphasizing the relevance of the third proviso to erstwhile Section 36(2) in such cases. The judgment highlighted the importance of the time limits for issuing show cause notices in matters related to revising assessable values, as per the provisions of the Central Excises & Salt Act, 1944.