Applicability of Sections 11 A and 11B to Sections 51 and 52 of the Finance Act, 1982 - Instructions regarding - Central Excise - 17/88-CX.1

Applicability of Sections 11 A and 11B to Sections 51 and 52 of the Finance Act, 1982 - Instructions regarding Circular No. 17/88-CX.1 Dated 27-4-1988 [From F. No. 6/81/85-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Applicability of Sections 11 A and 11B to Sections 51 and 52 of the Finance Act, 1982 - Instructions regarding Doubts have been raised as to whether demands under Section 51 or 52 of the Finance Act, 1982, could be raised without any time limit or whether they would be covered by the time limit provided under Section 11A of the Central Excises Salt Act, 1944. 2. The matter has been examined by the Board. The question whether the provisions of clause (d) of sub-section 2 of Section 51 of the Finance Act, 1982, could override the provisions of Section 11A of the Central Excise Salt Act, 1944, came up for decision before the Delhi High Court in the case of M/s. J.K. Cotton Spinning Weaving Mills Co. Ltd. v. Union of India and Others. The Delhi High Court, inter alia, held that recoveries under Section 51 of the Finance Act, 1982 would be covered by the time limit prescribed under Section 11A of the Central Excise Salt Act, 1944. The appeal filed by the Department before the Supreme Court against this judgment of the Delhi High Court, has been dismissed on merits on 30-10-1987 (Civil Appeal No. 297 of 1983). This decision of the Supreme Court has since been accepted by the Ministry. 3. The provisions of Section 52 of the Finance Act, 1982 are identical to those of Section 51 of the Finance Act, 1982. The decision of the Supreme Court in the case of M/s. J.K. Cotton Spinning Weaving Mills Co. Ltd. cited above would therefore apply mutatis mutandis to the provisions of Section 52 of the Finance Act, 1982 as well. 4. On similar ground any refunds arising out of Section 52 of the Finance Act, 1982 would be covered by the time limit prescribed under Section 11B of the Central Excises and Salt Act, 1944. 5. Pending cases may be disposed of on the above lines.