Limitation bars central excise demand where the manufacturing process was already known to the department.

Where the manufacturing process was already known to the department, the extended period of limitation could not be invoked for a central excise demand on bare copper wire arising at an intermediate stage of manufacture. The assessee was a licensed manufacturer, and the show cause notice was issued beyond the normal six-month period. On that basis, the Tribunal held the demand to be time-barred and set it aside, without examining the merits of the duty liability.

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Issues: Whether the demand of central excise duty was barred by limitation on the ground that the process of manufacture was already within the department's knowledge.

Analysis: The demand related to duty on bare copper wire emerging at an intermediate stage of manufacture. The record showed that the assessee was a licensed manufacturer and that the process of manufacture was known to the department. In these circumstances, the Tribunal held that the extended period could not be invoked and that the show cause notice had been issued beyond the normal period of six months. The merits of the duty demand were therefore not examined.

Conclusion: The demand was time-barred and was set aside in favour of the assessee.

Ratio Decidendi: Where the relevant manufacturing process is within the department's knowledge, a demand cannot be sustained by invoking limitation beyond the normal period.

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