counting of limitation period for issuance of an SCN

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..... counting of limitation period for issuance of an SCN
Query (Issue) Started By: - onkar kumar Dated:- 22-9-2011 Last Reply Date:- 22-9-2011 Central Excise
Got 2 Replies
Central Excise
Sir, The limitation period for issuance of demand cum show cause notice starts from the date of filing of return or date of non-payment / short-payment of duty, as prescribed under Section 11A of the Cen .....

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..... tral Excise Act, 1944. If the duty was not paid on account of fraud, suppression of facts, etc. the extended limitation period is of five years, otherwise the normal limitation period is of one year. Is there any recent case law or provision prescribing counting of the period of limitation from the date of knowledge to the department. Now, logically I am of view that, if the SCN is issued after o .....

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..... ne year from the date of knowledge, it is time barred even if it is issued within five years from the date of non-payment or short-payment on account of fraud, suppression or etc. Am I correct? I want to know that any matter raised by audit and initial reply was given by the assessee on that particular audit para. Now the department has issued an SCN after more than one year from receipt of the r .....

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..... eply from assessee. Can assessee have option to strongly contest the SCN on the ground of limitation bar? Is there any case law squarely applicable in such type of case? Pl. quote. Reply By NEERAJ KUMAR, RANCHI: The Reply: Dear Mr Kumar In my opinion your stand doesnot appear to be correct, infact statutory period of five years is available to the department, irrespective of the date of knowled .....

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..... ge of suppression. But yes, five year period is applicable only for clearance made prior to the date of knowldge of the department. Reply By NEERAJ KUMAR, RANCHI: The Reply: You can refer to the case law in the matter of COMMISSIONER OF CENTRAL EXCISE SURAT-I Vs NEMINATH FABRICS PVT LTD by the Hon'ble HIGH COURT OF GUJARAT AT AHMEDABAD Dated: April 22, 2010
Discussion Forum - Knowledge S .....

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..... haring .....

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