Time-bar and pre-adjudication duty payment defeated the excise demand, leaving no surviving notice for the remaining period.

A demand for the period up to February 2012 was treated as time-barred because it was covered by an earlier Tribunal ruling on identical facts. For March 2012, the show cause notice did not survive because duty had already been paid at the full rate before adjudication, attracting Section 11A(2B) of the Central Excise Act, 1944. The Tribunal therefore did not proceed to finally determine classification for that month once duty payment had been made. The entire demand was set aside, with consequential relief available according to law.

---

---

Issues: (i) Whether the demand for the period up to February 2012 was barred by limitation. (ii) Whether the demand for March 2012 survived when duty had already been paid under protest at the full rate.

Issue (i): Whether the demand for the period up to February 2012 was barred by limitation.

Analysis: The disputed demand was held to be covered by the Tribunal's earlier decision on identical facts. On that footing, the demand relating to the period up to February 2012 was treated as time-barred. The Tribunal also noted the earlier view that the goods were classifiable under Chapter Heading 9506 in the context of the cited drawback notifications, but it found it unnecessary to finally decide classification once limitation was dispositive for that period.

Conclusion: The demand up to February 2012 was barred by limitation, in favour of the assessee.

Issue (ii): Whether the demand for March 2012 survived when duty had already been paid under protest at the full rate.

Analysis: For March 2012, the assessee had already paid duty at the full rate. In view of Section 11A(2B) of the Central Excise Act, 1944, the show cause notice did not survive for that month. The Tribunal therefore declined to enter into the classification dispute for that surviving month.

Conclusion: The demand for March 2012 did not survive, in favour of the assessee.

Final Conclusion: The entire demand was set aside and both appeals succeeded, with consequential relief available according to law.

Ratio Decidendi: Where the demand for an earlier period is time-barred and the assessee has discharged duty for the remaining period before adjudication, the notice does not survive for that period under Section 11A(2B) of the Central Excise Act, 1944.

---