counting of limitation period for issuance of an SCN

[onkar kumar]

Sir,

The limitation period for issuance of demand cum show cause notice starts from the date of filing of return or date of non-payment / short-payment of duty, as prescribed under Section 11A of the Central Excise Act, 1944. If the duty was not paid on account of fraud, suppression of facts, etc. the extended limitation period is of five years, otherwise the normal limitation period is of one year.

Is there any recent case law or provision prescribing counting of the period of limitation from the date of knowledge to the department. Now, logically I am of view that, if the SCN is issued after one year from the date of knowledge, it is time barred even if it is issued within five years from the date of non-payment or short-payment on account of fraud, suppression or etc. Am I correct?

I want to know that any matter raised by audit and initial reply was given by the assessee on that particular audit para. Now the department has issued an SCN after more than one year from receipt of the reply from assessee. Can assessee have option to strongly contest the SCN on the ground of limitation bar? Is there any case law squarely applicable in such type of case? Pl. quote.

AI Summary

Debate on Limitation Period for Demand Notices Under Section 11A of Central Excise Act, 1944: Fraud Extends to Five Years The discussion focuses on the limitation period for issuing a demand cum show cause notice (SCN) under Section 11A of the Central Excise Act, 1944. The limitation period is typically one year from the date of non-payment or short-payment of duty, but extends to five years in cases involving fraud or suppression of facts. A query is raised about whether the limitation should start from the department's knowledge date, suggesting that an SCN issued after one year from this date could be time-barred. A respondent argues that the five-year period applies regardless of the department's knowledge date, referencing a relevant case law.