Limitation under central excise law barred the demand where suppression was not specifically pleaded in the notice.

A central excise demand was held time-barred under Section 11A because the show cause notice was issued after the prescribed period, following clearances made between 1-4-1978 and 12-9-1978 and an RT-12 return that had already been filed and finalised. The extended limitation period for suppression was unavailable because suppression was not specifically alleged in the notice, and the departmental endorsements on the RT-12 returns showed verification of the relevant particulars. The demand was therefore unsustainable and the matter was decided in favour of the assessee.

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Issues: Whether the show cause notice demanding central excise duty was barred by limitation under Section 11A.

Analysis: The goods were cleared during the period 1-4-1978 to 12-9-1978, while the show cause notice was issued on 10-3-1980. The RT-12 return for March 1979 was filed on 2-4-1979 and was finalised on 23-4-1979. On these facts, the notice was issued beyond the prescribed period. The plea of extended limitation based on suppression of facts was not available because the alleged suppression had not been specifically set out in the show cause notice, and the departmental endorsements on the RT-12 returns showed verification of the relevant details.

Conclusion: The demand was time-barred and unsustainable; the issue is decided in favour of the assessee.

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