Limitation under Section 11A barred the excise demand notice issued after the prescribed period.

A show cause notice demanding differential excise duty was examined for limitation under Section 11A of the Central Excises and Salt Act, 1944. The notice related to duty for 4 August 1976 to 31 December 1976 but was issued only on 24 May 1983, placing it beyond the prescribed period. The text notes that even if the proviso to Section 11A applied, the notice was still issued after the expiry of five years. The legal point stated is that a demand notice issued beyond the statutory limitation period under Section 11A cannot be sustained and is liable to be quashed.

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Issues: Whether the show cause notice demanding differential excise duty was barred by limitation under Section 11A of the Central Excises and Salt Act, 1944.

Analysis: The duty demand related to the period from 4 August 1976 to 31 December 1976, while the show cause notice was issued on 24 May 1983. On the admitted facts, the notice was beyond the prescribed period of limitation. Even on the footing that the proviso to Section 11A applied, the notice was still issued after expiry of five years.

Conclusion: The show cause notice was barred by limitation and was liable to be quashed.

Ratio Decidendi: A demand notice issued beyond the prescribed limitation period under Section 11A cannot be sustained and is liable to be set aside.

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