Section 11A limitation and status quo orders: excluded period saved the show cause notice from being time-barred.

Section 11A limitation is computed from the date of removal of the goods, and a show cause notice that appears to exceed six months must still be tested against any period excluded by law. Where a High Court status quo order was in force, it was treated as restraining the Department from proceeding with classification and from issuing a notice inconsistent with that order. The period during which the order operated was therefore excluded under the explanation to Section 11A, making the notice dated 17 June 1987 within time and validating the Assistant Collector's jurisdiction to issue it.

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Issues: Whether the Assistant Collector had jurisdiction to issue the show cause notice in view of the limitation period under Section 11A, and whether the period during which the High Court's status quo order remained in force had to be excluded in computing limitation.

Analysis: The relevant date for service of notice under Section 11A was the date of removal of the goods, and the notice covered a period exceeding six months on its face. However, the High Court's order directing maintenance of status quo was treated as restraining the Department from proceeding with classification and, by necessary implication, from serving a notice that would have amounted to disregarding that order. On that construction, the period during which the order remained operative was required to be excluded under the explanation to Section 11A. Applying that exclusion, the notice dated 17 June 1987 was held to be within time.

Conclusion: The Assistant Collector had jurisdiction to issue the show cause notice, and the limitation objection failed.

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