Extended limitation in central excise stayed recovery where approved returns and price lists showed a strong prima facie time-bar defence.

A demand raised about four and a half years after the relevant period was challenged as time-barred despite reliance on the extended limitation proviso under the Central Excise Act. The applicants pointed to filed and approved price lists and RT-12 returns, noting that the department already had the declared values and the reason for the lower price was apparent from the record. On that prima facie basis, the limitation objection was considered strong, and no separate explanation in the price list was treated as necessary for the reduced price. Waiver of pre-deposit was therefore granted and recovery of duty and penalties was stayed.

---

---

Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery in view of the demand being raised beyond the normal period of limitation, and whether the demand disclosed a prima facie case for insisting on deposit.

Analysis: The demand was issued after about four and a half years by invoking the extended period under the proviso to Section 11A(1) of the Central Excise Act, 1944. The price lists and RT-12 returns had been filed and approved, and the reason for reduction in price had been available to the department from the declared values. On a prima facie view, the applicants had a strong case on limitation, and no rule required a specific explanation in the price list for the lower price.

Outcome: Waiver of pre-deposit was granted and recovery of the duty and penalties was stayed.

---