Unchallenged limitation finding defeats the Revenue's appeal where the show cause notice was held time-barred.

Where the Commissioner (Appeals) had set aside the demand on both merits and limitation, the Tribunal held that the Revenue's appeal could not proceed because the finding that the show cause notice was time-barred remained unchallenged. Since no ground was raised before the Tribunal against the limitation finding, that conclusion attained finality and the dispute did not survive for further examination. The appeal was therefore rejected in favour of the assessee on limitation.

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Issues: Whether the Revenue's appeal was liable to be rejected on the ground that the finding of the Commissioner (Appeals) on limitation remained unchallenged.

Analysis: The Commissioner (Appeals) had set aside the demand both on merits and on limitation, and had recorded a conclusive finding that the show cause notice was time-barred. The Revenue did not advance any challenge before the Tribunal on the question of limitation, although it disputed the merits. In view of the unassailed finding on limitation, the appeal did not survive for further consideration.

Conclusion: The appeal was rejected in favour of the assessee on the ground of limitation.

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