Excise limitation on stock shortages turns on acceptance of the stock report, not the mere date of physical counting.

For excise limitation purposes, shortage in annual stock taking became legally relevant only when the assessee's stock-taking report was presented to and accepted by the proper officer, not when the physical count was merely completed. On the stated facts, the report was completed on 31-8-1982, received by the Superintendent on 1-9-1982, and the notice issued on 22-2-1983 was therefore within time. The limitation objection did not disclose a referable question of law, because the operative date was the final ascertainment and acceptance of the shortage, rather than the earlier physical stock-taking date.

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Issues: Whether the demand of central excise duty was time-barred, and whether any question of law arose for reference on the basis of the date on which shortage was found in annual stock taking versus the date on which the stock-taking report was completed and accepted by the proper officer.

Analysis: The relevant statutory setting required annual stock taking to be done in the presence of the proper officer, and the shortage became legally relevant only when the report prepared by the assessee was presented and accepted by the proper officer. Mere completion of a physical stock count by the assessee did not, by itself, amount to final ascertainment of deficiency for limitation purposes. On the facts, the stock-taking statement was completed on 31-8-1982 and received by the Superintendent on 1-9-1982, and the notice issued on 22-2-1983 was therefore within time. In these circumstances, the claimed limitation point did not disclose any referable question of law.

Conclusion: The demand was not time-barred, and no question of law requiring reference arose.

Final Conclusion: The application was dismissed after holding that limitation did not defeat the demand and that the matter did not justify reference.

Ratio Decidendi: For limitation under the excise framework governing stock shortages, the relevant date is the point at which the shortage is finally ascertained and accepted by the proper officer, not the mere date of physical stock taking by the assessee.

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