Ejusdem Generis Limits Section 40(2) Limitation Bar; penalty proceedings under excise rules fall outside its scope

The expression "other legal proceedings" in Section 40(2) of the Central Excises and Salt Act, 1944, as it stood before amendment by Act 22 of 1973, was read ejusdem generis with "suit" and "prosecution" because those words formed a common genus. On that construction, the limitation bar did not extend to penalty proceedings under Rule 173Q of the Central Excise Rules, so such proceedings were outside Section 40(2).

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Issues: Whether the bar of limitation contained in Section 40(2) of the Central Excises and Salt Act, 1944, as it stood before amendment by Act 22 of 1973, applies to penalty proceedings under Rule 173Q of the Central Excise Rules.

Analysis: The question was treated as concluded by an earlier decision, which held that the expression "other legal proceedings" in Section 40(2) must be read ejusdem generis with "suit" and "prosecution" because those words form a common genus. On that basis, the limitation bar was not extended to the penalty proceedings in question, and the issue was regarded as fully covered.

Conclusion: The limitation bar in Section 40(2) did not apply to penalty proceedings under Rule 173Q, and the appeal failed.

Ratio Decidendi: The expression "other legal proceedings" in the limitation provision is confined by the principle of ejusdem generis to proceedings of the same kind as suits and prosecutions, and does not extend to penalty proceedings under the excise rules.

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