Limitation on differential notional credit demand fails where suppression is not proved and records disclosed the relevant facts.

The demand for differential notional credit was time-barred because the show cause notices were issued beyond the normal six-month period and the revenue failed to prove suppression of facts. The records showed that the higher notional credit had been reflected in the returns and supported by relevant documents, so mere repetition of a suppression allegation was insufficient to justify the extended limitation period. As no concealment of material facts was established, the demand, denial of credit and penalties could not be sustained.

---

---

Issues: Whether the demand for differential notional credit was barred by limitation in the absence of any proved suppression of facts.

Analysis: The show cause notices were issued beyond the normal period of six months. The allegation of suppression was not supported by any specific evidence, although the availment of higher notional credit was reflected in the records and disclosed through RT-12 returns along with the relevant documents. Mere repetition of the allegation by the adjudicating authority and the appellate authority, without demonstrating concealment of material facts, was insufficient to invoke the extended period.

Conclusion: The demand was held to be barred by limitation, and the denial of credit and penalties could not be sustained.

---