Statutory time-limit for excise adjudication barred a belated duty demand after extraordinary delay.

Section 11A(11) of the Central Excise Act requires timely adjudication of show cause notices issued under Section 11A(4) or 11A(5), and an extraordinary delay of about twenty years breached that statutory mandate. The belated adjudication was therefore contrary to the prescribed limitation and could not be sustained, with the consequential duty demand also failing. The issue was decided in favour of the assessee.

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Issues: Whether the adjudication of the show cause notices after an inordinate delay of about twenty years was vitiated for breach of the statutory time-limit under Section 11A(11) of the Central Excise Act, 1944.

Analysis: Section 11A(11) introduced a legislative mandate requiring timely determination of duty where show cause notices are issued under Section 11A(4) or Section 11A(5). The impugned adjudication was made after an extraordinary delay, far beyond the prescribed period. Such belated adjudication was held to be contrary to the statutory limitation and therefore unsustainable.

Conclusion: The issue is decided in favour of the assessee. The adjudication and consequential duty demand could not be sustained for violation of Section 11A(11) of the Central Excise Act, 1944.

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