Enhancing period of limitation to 2 years - some stray thoughts!

Sir,
I thank the 'concerned' officer for inviting views from the readers. The concern of the officer with regard to time limit to issue notice under Section 11A of Central Excise Act seems to be unfounded due to following reasons. As on 22/2/2016, the only course of action left with him was to demand duty in normal period of one year in case of short payment of duty not involving suppression of facts etc which he did correctly. If it is a case of existence of elements necessary to invoke proviso to Section 11A to demand duty in extended period, nothing would have prevented him from doing so. It is incorrect to state that there are no Board Circulars clarifying the the time limit issues covered in the Finance Act 2016 by amending Section 11A of CEA by changing one year period to two years . Board had clarified vide Circular 555/51/2000-Cx1 dt 19.10.2000 that notices can be issued by going back to one year in 2000 when six months period was changed as one year in Section 11A. The present amendment in Section 11A is similar to the contents of the circular dated 19.10.2000 which has also referred to the Circular 540/36/2000-CX dt 8.8.2000. The Circular dated 8.8.2000 mentioned during the discussion was rescinded through Circular No. 606/43/2001-CX dt 4/12/2001. Discussion on time limit prescribed in amended Section 11A seems to be incomplete without citing the contents of circular dated 19.10.2000 cited above.

rrkothapally rrkothapally 25/06/2016