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1991 (1) TMI 136 - SC - Central ExciseWhether the show cause notice was issued after the expiry of the period of six months from the accrual of the cause of action thus the imposition of duty and levy of penalty be quashed? Held that:- The wide expression 'other legal proceeding' must be read ejusdem generis with the preceding words 'suit' and 'prosecution' as they constitute a genus. In this view of the matter we must uphold the contention of the learned Additional Solicitor General that the penalty and adjudication proceedings in question did not fall within the expression 'other legal proceeding' employed in Section 40(2) of the Act as it stood prior to its amendment by Act 22 of 1973 and therefore, the said proceedings were not subject to the limitation pres.c.ribed by the said sub-section. Allow this appeal and set aside the order passed by the learned Single Judge as well as the Division Bench which affirmed it and dismiss the respondent's writ petition itself. Interim stay granted on August 16,1979 is vacated and the appellant will be entitled to recover the dues from the security furnished pursuant to that order.
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