Limitation for central excise demand upheld where retrospective amendment validated notice issued after classification approval.

Differential duty on parts and accessories of medical equipment was examined in light of Notification No. 116/88-C.E., under which only goods specifically listed in the Table were covered and accessories were exempted only when expressly mentioned. The demand was not disputed on merits. The retrospective amendment to Section 11A of the Central Excise Act by the Finance Bill, 2000-2001 was treated as validating show cause notices issued on approval of classification or price lists, including notices issued within the normal limitation period. On that basis, the demand was treated as not barred by limitation and the appeal was rejected.

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Issues: Whether the demand of differential duty on parts and accessories of medical equipment was barred by limitation in view of the approved classification list and whether the retrospective amendment to Section 11A of the Central Excise Act validated the show cause notice.

Analysis: The exemption under Notification No. 116/88-C.E. covered the goods described in its Table, and where accessories were intended to be exempted they were specifically mentioned. The demand was not contested on merits. The retrospective amendment made to Section 11A of the Central Excise Act by the Finance Bill, 2000-2001 was treated as validating show cause notices issued on approval of classification or price lists, including notices issued within the normal period of limitation.

Conclusion: The demand was not barred by limitation and the appeal was rejected.

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