Limitation and Section 11D - Show Cause Notice after 19 Years?
INTERESTINGLY, Section 11 D initially did not contain machinery provisions for recovery of the amounts collected as excise duty and vide Finance Act, 2000, the section was amended retrospectively, to make good the defect, which came to light after the Madras High Court decision in Eternit Everest case. The SCNs issued to Eternit Everest case were adjudicated after the retrospective amendment and the revenue took up the matter to CESTAT holding that the SCNs are non est in the eyes of law and fresh notices should be issued after the retrospective amendment. The CESTAT has agreed with revenue and set aside the demands. Now, fresh notices are to be issued in 2011 for the period 1992-95, and the chances of holding 19 years as a reasonable period are very bleak! And the amount at stake is nearly 24.5 crores! May be there should be a class in NACEN to all the Ld Commissioners about the elementary issues on law!