Limitation for excise demands must be tested against the Department's knowledge date, not applied uniformly across all removals.

Excise demands based on alleged manufacturing activity could not be subjected to a uniform extended five-year limitation without first identifying when the Department became aware of the activity. The authorities had applied the longer period mechanically across the full demand, instead of separating removals made before and after departmental knowledge. The matter therefore required reconsideration of limitation by reference to the relevant date of awareness. Two delayed appeals remained dismissed, while the other appeals were remanded for fresh adjudication on time bar and connected issues.

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Issues: Whether the demands could uniformly be raised by invoking the extended five-year period of limitation, or whether the limitation had to be confined to six months for periods after the Department became aware of the manufacturing activity.

Analysis: The appeals turned on the point of limitation. The Department had knowledge of the manufacturing activity at different times in relation to the different units, and the applicability of the extended period depended on whether the duty became payable before or after such knowledge. The authorities below had applied the five-year period mechanically for the entire demand without examining the date on which the Department became aware of the activity and without distinguishing between removals made before and after that date. The matter therefore required fresh consideration on the question of time bar with reference to the relevant date of departmental knowledge.

Conclusion: The dismissal of the two delayed appeals stood, while the other three appeals succeeded to the extent that the impugned orders were set aside and the matters were remanded for reconsideration of limitation.

Final Conclusion: The decision was mixed: two appeals failed on delay, and the remaining appeals were sent back for fresh adjudication on limitation and connected issues.

Ratio Decidendi: For excise demands, the extended limitation cannot be applied mechanically to all periods of removal; the relevant date of the Department's knowledge of the activity must be ascertained, and the demand must be tested separately for periods before and after that date.

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