Limitation under Section 11A does not apply to stock-verification demands under Rule 223A; merits remanded.

Section 11A of the Central Excise Act does not govern a demand arising from stock verification under Rule 223A of the Central Excise Rules because the two provisions operate in different fields. A demand under Rule 223A is controlled by that rule itself, and the limitation period in Section 11A is not attracted. The Commissioner (Appeals)'s finding on limitation was set aside, and the matter was remanded for decision on merits after observing natural justice.

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Issues: Whether the period of limitation under Section 11A of the Central Excise Act, 1944 applies to a demand arising from stock verification under Rule 223A of the Central Excise Rules, 1944.

Analysis: The larger bench ruling held that Section 11A and Rule 223A operate in different fields. A demand arising from stock verification under Rule 223A is governed by that rule itself, and the limitation prescribed under Section 11A is not attracted to such a situation.

Conclusion: The finding of the Commissioner (Appeals) on limitation was set aside, and it was held that Section 11A does not apply to a case contemplated under Rule 223A. The matter was remanded to the Commissioner (Appeals) for on merits after observing natural justice.

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