Extended limitation unavailable where product details were fully disclosed despite incorrect classification

Declared product description, raw materials and end use were treated as a complete disclosure, so an incorrect classification by the assessee did not by itself amount to suppression of facts or misstatement. On that basis, the Department could not invoke the extended period of limitation and was confined to the normal limitation period on the disclosed particulars. The demand therefore could not be sustained by relying on extended limitation.

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Issues: Whether the extended period of limitation was available to the Department for raising the duty demand in view of the classification declared by the assessee.

Analysis: The declared product description, raw materials and end use were held to constitute a complete declaration. Even if the classification shown by the assessee was incorrect, the omission did not amount to suppression of facts or misstatement so as to justify invocation of the extended limitation period. The Department was required to act within the normal time limit on the basis of the disclosed particulars.

Conclusion: The extended period of limitation was not available to the Department, and the demand could not be sustained on that basis.

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