1998 (8) TMI 189 - AT - Central Excise

Summary

Issues:
1. Interpretation of the retrospective application of an Explanation added to the Central Excises & Salt Act, 1944.
2. Determination of the relevant date for issuing a notice demanding duty on excisable goods.
3. Conflict between Section 47 of the Finance Act, 1982, and Section 11A regarding the limitation period for issuing a notice.

Analysis:

1. The judgment dealt with the retrospective application of an Explanation added to the Central Excises & Salt Act, 1944, by the Finance Act, 1982. The Explanation altered the calculation of assessable value for excisable goods. The issue was whether this Explanation overruled the provision of Section 11A regarding the limitation period for issuing a notice. The appellant contended that the notice demanding duty was time-barred as it was not issued within six months from the relevant date as per Section 11A. The Collector (Appeals) held that Section 47 does not override Section 11A, and the notice should have been issued within the stipulated time frame. The Tribunal upheld this decision, emphasizing that the retrospective application of the Explanation does not exempt the notice from the limitation period set by Section 11A.

2. Another issue addressed in the judgment was the determination of the relevant date for issuing a notice demanding duty on excisable goods. The Departmental Representative argued that the duty became recoverable upon the enactment of the Finance Act, 1982, which introduced the relevant Explanation. However, the Tribunal rejected this argument, citing Section 11A(3)(ii) to determine the relevant date. It was concluded that the relevant date should be calculated based on the filing of periodical returns under the Act, rather than the enactment date of the amending legislation.

3. The conflict between Section 47 of the Finance Act, 1982, and Section 11A regarding the limitation period for issuing a notice was a crucial aspect of the judgment. The Tribunal clarified that the provision of Section 11A must be adhered to, irrespective of the retrospective application of the Explanation. The argument that the notice could be issued within six months from the enactment of the Finance Act, 1982, was dismissed. The Tribunal relied on the precedent set by the Supreme Court in a similar case to support its decision. Consequently, the appeal was dismissed, affirming the importance of complying with the statutory limitation period set by Section 11A in such matters.