It has been observed by the Board that CEGAT, in some cases, had held that show Cause Notice are time barred in as much as ingredients of suppression of fact, wilful mis-statement, etc. have either not been stated in the SCN or have not been substantiated as laid down by the Supreme court in the case of Commissioner of Central Excise vs. H.M.M. Ltd. -1995 (76) ELT 497. As per the existing instructions SCNs for extended period are required to be issued by the Commissioner. It is absolutely necessary that the SCNs should clearly state the grounds for extended period of demand.

2.     It is also desired by the Board that wherever there is delay in issuing SCN for demands, instead of covering up the delay by issuing SCN for extended period without proper grounds, the responsibility for the delay in issuing the SCN and thus causing revenue loss, should be fixed on the concerned officers, necessary action taken/ initiated and a detailed report sent to the Chief Commissioner/ Board.

3.     The above instructions should be followed strictly.