2009 (4) TMI 170 - HC - Central Excise

Court dismisses revenue's appeal under Section 35G of Central Excise Act, citing limitation period breach.

The High Court of Punjab and Haryana dismissed the revenue's appeal under Section 35G of the Central Excise Act, 1944, challenging a Customs, Excise and ... Initiation of penalty proceedings – time limit – held that - It is conceded position that proceedings against the respondent-assessee for imposing penalty were initiated after the expiry of period of five years. Although there is no statutory period of limitation yet reasonable period of limitation for initiating proceedings is five years - Hon’ble the Supreme Court in the case of State of Punjab v. Bhatinda District Cooperative Milk Producers Union Ltd has held that if no provision is made regarding period of limitation for exercising revisional jurisdiction under the Punjab General Sales Tax Act, 1948, then maximum period of five years is regarded as reasonable period The High Court of Punjab and Haryana dismissed the revenue's appeal under Section 35G of the Central Excise Act, 1944. The appeal challenged an order passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi. The court stated that initiating penalty proceedings after the expiry of five years is beyond a reasonable period of limitation. The court referred to a Supreme Court judgment to support this reasoning. The appeal was found to have no merit and was dismissed.