GOKAK PATEL VOLKART LIMITED vs COLLECTOR OF CENTRAL EXCISE, BELGAUM

The Supreme Court held that a show cause notice issued beyond the limitation period specified under Section 11A of the Central Excises and Salt Act, 1944 is invalid. The Court clarified that the statutory scheme requires a notice to be a condition precedent to a demand, and since the High Court did not stay the service of notice, the benefit of the Explanation to Section 11A was not available to the Respondent. Consequently, the appeal was allowed, and the demand was set aside as it contravened statutory provisions.