1986 (10) TMI 199

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....n in accordance with the procedure prescribed under Rule 49A of the Central Excise Rules, 1944. According to this Rule the duty on cotton and cellulosic spun yarn used in the manufacture of cotton fabrics was permitted to be paid at the time of removal of cotton fabrics. In addition to the yarn, duty interest at the rate of 1.5% of such duty was required to be paid if the fabrics were cleared at the grey (unprocessed) stage and interest at the rate of 3% was chargable if the fabrics removed were processed. The respondents had also filed a classification list showing levy of interest at 1.5% on calendered fabrics. Later on, it appeared to the Excise authorities that interest was chargeable at the rate of 3% since calendered fabrics were proc....

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....nditions (1) and (2) of Rule 49A. This expression according to the learned consultant, pointed out to the fact that appropriate duty plus the interest as a whole is nothing but duty and recovery thereof was, therefore, actually governed by the provisions of Section 11A. The learned consultant further pleaded that even if it is accepted that interest was not duty in the instant case and Section 11A was not the governing provisions for recovery of short-payment of such interest then the provisions of Limitation Act would apply and that would be 3 years from the date of short-payment. In that view also he submitted that the demand of the sum was time barred and the appeal is, therefore, liable to be rejected. Replying to the learned consult....

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.... law of limitation before the Tribunal and the decision of the Tribunal mentioned supra in this connection by the learned SDR, I would observe that where a time limit has been provided in respect of any specific area in the Central Excises and Salt Act itself the Tribunal would be governed by the limitation provided therein since the Tribunal is also a creature of that Act and cannot go beyond the provisions of that Act. In the Tribunal's decision mentioned by the learned SDR, the issue before the Bench was the condonation of time limit in filing a reference application. In respect of this, there is already a provision in the Act itself. Therefore, there could be no question of applying the provisions of Limitation Act as has been rightly h....