Circular No. 555/51/2000-CX.I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject : Duty – Section 11A – SCN under the amended section to cover extended period.
In connection with the Circular No. 540/36/2000-CX dated 8.8.2000 with regard to the interpretation of amended section 11-A of Central Excise Act, 1944 w.e.f. 12.5.2000, the Supreme Court Judgment in the case of Mysore Rolling Mills Private Limited Vs. Collector of Central Excise, Belgium [1987(28) ELT 50(SC)] has come to Board”s notice. The Supreme Court has examined the issue of limitation in that case in an identical situation. Prior to amendment, Rule 9 provided for a period of one year for rasing demands but with effect from 6.8.1977, the period of one year is substituted by five years. In that case, a demand notice was issued on 13.10.1978 involving the period from 27.9.1974 to 31.5.1977, i.e., after the lapse of one year as provided for in the unamended rule. The Supreme Court, while sustaining the notice, held that “Undoubtedly, the rule is intended to relate back and cover a period of five years from the date jurisdiction under the rule is invoked. The provision is, therefore retrospective in operation. ……Once the rule comes into existence and jurisdiction under the rule is invoked, it has got to cover a period upto five years preceding the date of issue of notice.”
The matter was again taken up with Ministry of Law for their advice who have advised that the above said judgement of the Supreme Court may be brought to the notice of fields formations.
The board, therefore, in modification of the earlier circular date 8.8.2000 desire that show-cause notices under the amended section 11A may be issued keeping in view the aforesaid specific judgment of the Apex Court in the context of applicability of extended period under Central Excise Law.