Section 11A limitation does not override Section 35E appeal proceedings in central excise recovery

Section 11A did not bar recovery of central excise duty merely because no notice under that provision was issued, where the matter had already been taken up in appeal under Section 35E. The Tribunal held that Section 11A does not override Section 35E and that the two provisions operate in their own fields. Accordingly, the department was not restricted to Section 11A alone for recovery in the circumstances, and the limitation objection based on Section 11A was rejected against the assessee.

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Issues: Whether the demand for excise duty was barred merely because no notice under Section 11A was issued, when the matter had already been carried in appeal under Section 35E.

Analysis: The Tribunal held that Section 11A does not override Section 35E. The existence of appellate proceedings does not make recovery of duty impossible simply because a notice under Section 11A was not issued within the period mentioned in that provision. The question was answered on the footing that the two provisions operate in their own fields and the department was not confined only to Section 11A for recovery in the circumstances of the case.

Conclusion: The objection based on Section 11A limitation was rejected and the issue was answered against the assessee.

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