Computation of limitation period

[Asked by 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

Service of notice governs limitation - notice is deemed served on delivery or lawful affixation; mere issuance is insufficient.
Computation of limitation for recovery depends on actual service of the show cause notice; notices are deemed served on the date of tender, delivery, or lawful affixation when sent by registered post with acknowledgement, speed post with proof of delivery, approved courier, or affixed at business or residence. Issuance or dispatch before the limitation cut off but reception after that date does not satisfy service requirements, and unexplained belated service may lead courts to presume the order was made on the later date, potentially beyond the statutory period.