Strict limitation for excise duty demands cannot be extended by waiting for a related High Court judgment.

Limitation for raising an excise duty demand under Rule 10 of the Central Excise Rules, 1944 must be computed strictly according to the statute, and it cannot be postponed because the Department is awaiting a related High Court judgment or its copy. The Tribunal held that where the valuation issue was not before the High Court and the judgment had already been pronounced in open court, the Department could not claim ignorance of its effect. Equitable considerations could not extend the prescribed six-month period, so the demand remained time-barred and the orders setting it aside were left undisturbed.

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Issues: Whether the demand of duty raised under Rule 10 of the Central Excise Rules, 1944 was barred by limitation of six months and whether the Department could postpone the commencement of limitation on the ground that it was awaiting the outcome or receipt of the High Court judgment.

Analysis: The Tribunal held that the valuation of the goods was not an issue before the High Court and that the judgment had been pronounced in open court, so the Department could not claim ignorance of its general effect. It further held that excise demands are governed strictly by the taxing statute and the prescribed limitation period, and that equitable considerations or the Department's pending view of the High Court proceedings could not extend the statutory time limit. The Tribunal therefore rejected the contention that limitation should run only from the date on which the Department received the copy of the High Court judgment.

Conclusion: The demand was not saved from the statutory time-bar; the appeals were dismissed and the orders setting aside the demands were not interfered with.

Ratio Decidendi: In matters of excise duty, limitation for raising a demand must be computed strictly in accordance with the statute and rules, and extraneous considerations such as awaiting the outcome or receipt of a related court judgment cannot suspend or extend the prescribed period.

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