Tribunal sets aside duty demand order due to delayed notice, emphasizing statutory time limits.

The Tribunal set aside the impugned order due to the delayed service of the show cause notice, rendering the duty demand time-barred and legally unenforceable. Citing a previous case, the Tribunal emphasized the significance of adhering to statutory time limits in serving show cause notices for duty demands. The appeal of the appellants was allowed, and the judgment was pronounced on 17-2-2005.

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Issues: Validity of the impugned order based on the service of show cause notice after the expiry of the extended period of limitation.

In this case, the appellants challenged the validity of the impugned order primarily on the basis that the show cause notice raising duty demand was served on them after the expiration of the extended period of limitation of five years. The appellants were involved in manufacturing excisable goods and availed benefits under Notification No. 206/63. They were also manufacturing barbered wire during the disputed period of 1980-81. The show cause notice, however, was issued on 22-8-85 and was pasted on the outer gate of the factory on 11-7-86, which clearly indicated that it was served on the appellants after the five-year limitation period for duty demand had lapsed.

Upon hearing both sides and reviewing the records, the Tribunal concluded that the impugned order should be set aside solely on the grounds of the delayed service of the show cause notice. The duty demand was deemed time-barred and legally could not be confirmed. The Tribunal cited a previous case, Sewing Ltd., where a similar issue led to the duty demand being set aside because the show cause notice was served after the prescribed time limit. This decision had been upheld by the Apex Court, further solidifying the legal precedence in such matters.

Based on the discussion and the legal precedents presented, the Tribunal set aside the impugned order and allowed the appeal of the appellants. The judgment was pronounced in open court on 17-2-2005, emphasizing the importance of adhering to statutory time limits in serving show cause notices for duty demands.

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