Computation of limitation period

[Guest]

In section 11 of CE act and section 73 of Finance Act the Department is empowered to recover short paid/not paid duty by issue of show cause notice which is required to be served within a specified time (one year/six months) of relevant date. Further relevant date is either date of filing return or if no return is filed last day of filing return or in other cases date of payment. My question is what is the date of service of notice. Is it to be taken as date on which SCN is signed/prepared or date on which it is dispatched by post or any other means or it is the date on which assesse receives the show cause notice. What is the precedence set with regard to this date of serving notice.? Is there any supreme court order which is taken as ratio to decide any dispute with regard to date of issue and date of receipt of show cause notice.??

AI Summary

Determining SCN Service Date: Signed, Dispatched, or Received? Section 37C Clarifies for Central Excise and Finance Acts. A query was raised regarding the computation of the limitation period for serving a show cause notice (SCN) under the Central Excise Act and Finance Act. The question focused on determining the correct date of service: whether it is the date the SCN is signed, dispatched, or received by the assessee. The response referenced Section 37C of the Central Excise Act, which outlines that service is deemed complete when the notice is tendered, delivered, or affixed as specified. It cited case law affirming that mere issuance is insufficient if the notice is not received within the statutory period, as upheld by the Supreme Court.