Invalid show cause notice where extended limitation was invoked by an officer lacking authority, rendering proceedings unsustainable

A show cause notice invoking the extended limitation period was invalid because it was issued by an officer not legally empowered to do so under the Central Excises & Salt Act, 1944. The objection was treated as a pure question of law going to the root of the matter and was allowed to be raised without fresh evidence. Proceedings founded on a notice issued by an incompetent authority could not be sustained, and the order under appeal was set aside in favour of the assessee.

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Issues: Whether a show cause notice invoking the extended period under the proviso to Section 11A(1) of the Central Excises & Salt Act, 1944, issued by an Assistant Collector who was not empowered to do so, was without jurisdiction and liable to be set aside.

Analysis: The objection was permitted to be raised as it involved a pure question of law going to the root of the matter and did not require fresh evidence. The appeal tribunal distinguished the cited contrary authority on the basis that it dealt with an attempt to introduce additional evidence without leave, whereas the present case concerned a fresh legal ground raised with permission under the procedural rules. The tribunal relied on the line of authority that a notice issued by an not competent to invoke the extended period is invalid and proceedings founded on such notice cannot be sustained.

Conclusion: The notice was held to have been issued by an officer not empowered under the proviso to Section 11A(1) of the Central Excises & Salt Act, 1944, and the order appealed against was set aside in favour of the assessee.

Ratio Decidendi: A show cause notice invoking the extended limitation period must be issued by the authority legally empowered to do so, and proceedings founded on a notice issued by an incompetent officer are invalid.

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