Exemption notification coverage limits excise demand interference, with partial remand for reconsideration of the covered period.

A duty demand that included a period covered by an applicable exemption notification was found infirm to that limited extent. The High Court declined to reopen the entire excise dispute or undertake fresh fact-finding, but held that the demand relatable to 27 March 1987 to 31 August 1987 required reconsideration because that period fell within Notification No. 101 of 1987. The Tribunal's order was therefore interfered with only partially, and the appeal was restored for fresh consideration on that narrow question. The plea of limitation was not examined on merits because it had not been specifically pleaded before the authorities below.

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Issues: Whether the petitioner was entitled to limited relief in respect of the duty demand relatable to the period covered by Notification No. 101 of 1987 dated 27th March 1987, and whether the Tribunal's dismissal of the appeal required interference to that limited extent.

Analysis: The petition challenged the Tribunal's order confirming duty and penalty in excise proceedings. The Court declined to reopen the entire merits or undertake a fresh factual inquiry, but noticed that the last item in the show cause notice covered the period from 27-3-1987 to 31-8-1987, which fell within the period to which Notification No. 101 of 1987 applied. Since the Tribunal's earlier approach in a similar matter had granted relief for that specific period, the impugned order was found infirm only to that extent. The plea of limitation was not examined on merits because it had not been specifically raised and pleaded before the authorities below.

Conclusion: The petition succeeded only in part. The Tribunal's order was set aside only for the demand relatable to 27-3-1987 to 31-8-1987, and the appeal was restored to the Tribunal for fresh consideration on that limited question.

Final Conclusion: The overall result was a partial interference in favour of the petitioner, with the excise dispute kept alive only to the limited extent requiring reconsideration by the Tribunal.

Ratio Decidendi: Where a demand includes a period specifically covered by an applicable exemption notification, the appellate order can be interfered with to that limited extent and the matter remanded for reconsideration on that narrow issue.

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