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SUPREME COURT OF INDIA
S. Rajendra Babu, G.P. Mathur, JJ.
Collector Of Central Excise, New Delhi - Appellant
Versus
Bhagsons Paint Industry (India) - Respondent
Appeal Civil 5774 of 1997
Decided On : 16-10-2003
Central Excise Act - Adjudication after Lapse of Time - The court held that adjudication after a lapse of nearly nine years after the issue of show cause notice is permissible and set aside the Tribunal's decision. The adjudication pertains only to the actual levy of the duty due to the department and not to any levy of interest or penalty.
Fact of the Case:
The Tribunal held that adjudication after a lapse of nearly nine years after the issue of show cause notice is not permissible and set aside the same.
Finding of the Court:
The court found that there is no statutory bar to adjudicate the matter even after a lapse of nine years after the issue of show cause notice. The court set aside the Tribunal's decision and remitted the matter to the Tribunal for fresh disposal in accordance with the law.
Issues: Adjudication after a lapse of time, statutory bar, actual levy of duty
Ratio Decidendi: The court held that adjudication after a lapse of time is permissible and pertains only to the actual levy of the duty due to the department, not to any levy of interest or penalty.
Final Decision: The appeal was allowed, and the court set aside the Tribunal's decision, remitting the matter to the Tribunal for fresh disposal in accordance with the law.
ORDER :
1. The Tribunal in an appeal arising under the Central Excise Act held that the adjudication made after a lapse of nearly nine years after the issue of show cause notice is not permissible and set aside the same.
2. There is no statutory bar to adjudicate the matter even after lapse of nine years after the issue of show cause notice and the adjudication pertains only to the actual levy of the duty which is due to the department and not to any levy of interest or penalty. In these circumstances we think the view taken by the Tribunal is not justified and we set aside the order made by the Tribunal and remit the matter to the Tribunal for fresh disposal in accordance with law after restoration of the appeal to its original number. The appeal is allowed accordingly.
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