Limitation for excise demand runs from the annual declaration date when facts are disclosed, making the notice time-barred.

For a non-registered excise unit that filed an annual declaration under Rule 174A disclosing turnover and valuation details, limitation for a demand under Section 11A runs from the date of that declaration, because that is when the department acquires knowledge of the relevant facts. Applying that rule, a show cause notice issued after the statutory period was time-barred. The contrary approach of counting limitation from the last date for filing the declaration was rejected, and the demand was therefore unsustainable.

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Issues: Whether the show cause notice demanding differential central excise duty was barred by limitation when the assessee had filed the annual declaration on 13.04.1994 and the notice was issued on 13.10.1994.

Analysis: The annual declaration filed under Rule 174A of the Central Excise Rules, 1944 disclosed the relevant details of turnover and valuation for the period in question. For a non-registered unit not filing periodic returns, the department's knowledge of the relevant facts arose from that declaration, and the limitation under Section 11A of the Central Excise Act, 1944 had to be computed from the date of filing of the declaration. On that basis, the notice issued on 13.10.1994 was beyond the permissible period. The contrary view that limitation should run from the last date for filing the declaration was rejected.

Conclusion: The demand was held to be barred by limitation and therefore unsustainable.

Final Conclusion: The impugned order was set aside and the appeal succeeded on the ground of limitation.

Ratio Decidendi: Where a non-registered assessee files the annual declaration required for excise purposes, limitation for issuing a demand notice runs from the date of such declaration, and a notice issued beyond the statutory period is time-barred.

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