Central Excise - Limitation under Section 11A, not applicable to compounded levy scheme - Supreme Court
THE Supreme Court, yesterday held that the importing of elements of one scheme of tax administration to a different scheme of tax administration would be wholly inappropriate as it would disturb the smooth functioning of that unique scheme. The time limit prescribed for one scheme could be completely unwarranted for another scheme and time limit prescribed under Section 11A of the Act is no exception.
The Supreme Court observed that the judgement of the Supreme Court in the case Commissioner of C. EX & Customs v. Venus Castings (P) Ltd as reported in - had has clearly laid down the principle that the, compounded levy scheme is a separate scheme altogether and an assessee opting for the scheme is bound by the terms of that particular scheme. It is settled matter now that Section 11A of the Act has no application for recovery under different schemes.
This would mean that there would be no time limit for demands under the compounded levy scheme. Will the Limitation Act work?
We bring you today this landmark decision of the Supreme Court delivered yesterday.
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