Circular No.606/43/2001-CX, dt. 4th December, 2001

Amendment of Section 11A of the Central Excise Act, 1944-
effect of time barred demand
I am directed to invite reference to the Board"s Circular No.555/51/2000-CX, (F.No.4/3/2001-CX.1) dated 19.10.2000 on the above mentioned subject modifying our earlier circular No.540/36/2000-CX, dated 8.8.2000. The circular dated 8.8.2000 is hereby rescinded.

The matter was also referred to Additional Solicitor General of India in April, 2001 in a related context who has opined that after the amendment to Section 11A by the Finance Act, 2000, demands could be raised for a period of one year prior to the date of show cause notice (Ref. Answer to query No. 1). A copy of ASG"s opinion has already been sent to you vide Circular No.4/1/2001-CX.I dated 19.9.2001.

In view of the above, Circular No.540/36/2000-CX dated 8.8.2000 stands rescinded.

This may be brought to the notice of field formations.

Receipt of the Circular may please be acknowledged.

Sd/-
(S.C.Bhatia)
Under secretary to the Govt of India

F.No.4/3/2000-CX.I

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