Limitation under Central Excise law defeated the show cause notice, and the demand was set aside.

A show cause notice under the Central Excise Act was challenged as time-barred under Section 11A. The notice covered a period extending beyond the normal six-month limitation, but the discussion turned on the statutory wording applicable during the relevant period when the extended limitation provision was invoked. On the facts stated, the notice was found unsustainable on limitation, and the demand could not be maintained. The impugned order was therefore set aside in favour of the assessee.

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Issues: Whether the show cause notice dated 14.06.2000 was barred by limitation under Section 11A of the Central Excise Act, 1944.

Analysis: The show cause notice covered the period from 30.09.1995 to 11.04.2000. The normal limitation period under the Central Excise law was six months, but once the extended period was invoked under Section 11A of the Central Excise Act, 1944, the statutory wording applicable during the material period displaced the normal six-month period. On the facts, the notice was found to be unsustainable on limitation and the impugned order could not be maintained.

Conclusion: The show cause notice was held to be hit by limitation and the demand was set aside in favour of the assessee.

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