COLLECTOR OF CENTRAL EXCISE, CHANDIGARH vs DOABA CO-OPERATIVE SUGAR MILLS LTD.,JALANDHAR

The Supreme Court held that Section IIA of the Central Excises and Salt Act, 1944 applies only to demands for Central Excise duty that is short levied or erroneously refunded. In this case, the demand for excess production rebate was not based on these grounds, thus the show cause notice issued was invalid. The Court emphasized that when duty is levied without statutory authority, the general law applies, and the limitation period begins when the error is discovered. The appeal was dismissed, affirming the Tribunal's decision that the Revenue's claim was barred by limitation.