Extended limitation cannot be invoked when returns disclose the facts and the department is already aware of the relevant change.

Extended limitation could not be invoked for a departmental demand arising from an alleged short levy due to reclassification of Polyester Texturised Yarn, because the assessee had timely filed the classification list and RT-12 returns and the department was already aware of the relevant budget changes. In the absence of allegations supporting invocation of the extended period, the demand was held to be time-barred and the lower authority's order was upheld. The departmental challenge therefore failed on limitation, and the demand remained undisturbed.

---

---

Issues: Whether the departmental demand was barred by limitation and whether the extended period could be invoked for the alleged short levy on account of change in tariff classification of Polyester Texturised Yarn.

Analysis: The appeal did not turn on the merits of classification. The lower appellate authority had rejected the demand on the ground that the show cause notice was issued beyond the prescribed period, and there was no allegation supporting invocation of the extended period. The classification list and RT-12 returns had been filed in time, and the department was aware of the budgetary changes. On those facts, no basis was found for applying the extended period of limitation.

Conclusion: The departmental challenge on limitation failed and the order of the lower authority was upheld.

Final Conclusion: The appeal was dismissed, leaving the assessee's defence of limitation intact and the demand undisturbed.

Ratio Decidendi: Where the assessee has disclosed the relevant facts through timely statutory returns and records, and the department is aware of the relevant change, the extended period of limitation cannot be invoked in the absence of allegations justifying such invocation.

---