Department Delayed Issuing SCN Despite Prior Intimation of Taxpayer’s CENVAT Credit Reversal: CESTAT Rules Excise Demand Time-Barred

CESTAT ruled that an excise demand was time-barred due to the department's delay in issuing a show cause notice (SCN) despite prior intimation from the taxpayer regarding the reversal of CENVAT credit. The Tribunal found that the delay exceeded the statutory limits, rendering the demand invalid. This decision reinforces the importance of timely action by tax authorities and the protection of taxpayers' rights when complying with tax regulations.