Counting of period of limitation for scn

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. Date of knowledge to the department is not relevant. 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. Earlier, I have gone through the text of some case laws holding that period of limitation is countable from the date of knowledge to the department but that was too old. Is there any recent case law or provision prescribing counting of the period of limitation from the date of knowledge to the department. Further, particular records scrutinized by departmental auditors under EA-2000 can be deemed that matter was in knowledge of the department.

An early comment is highly solicited.

Onkar

Replies (2)

It is settled that supression etc. is a positive and deliberate act, hence omission etc. cannot be a ground for invoking extended period. Also if matter is within the knowledge of department, supported by proof thereof , extended period is not invocable. Regarding EA-2000, there are conflicting decisions. But if you have evidence that a particular record has been verified by audit team and information under question is available in that record, you can possibly contest on limitation. 

Sir, 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. Thanks

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