Extended limitation for duty demand fails where classification was disclosed in declarations, invoices and RT-12 returns.

Classification declarations filed under Rule 173B disclosed the goods as sanitary fittings and parts thereof and claimed classification under Chapter 8481.80; the revenue checked the declarations and found them in order. The goods were also cleared under invoices showing the same classification and were reflected in RT-12 returns. On these facts, suppression of facts and intent to evade duty were not established, so the extended period could not be invoked. The duty demand was therefore held to be time barred and the extended limitation was not sustainable.

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Issues: Whether the demand of duty was barred by limitation on the ground that the assessee had suppressed facts with intent to evade duty.

Analysis: The assessee had filed classification declarations under Rule 173B describing the manufactured goods as sanitary fittings and parts thereof, claimed classification under Chapter 8481.80, and the declarations were checked and found in order by the revenue. The goods were also cleared under invoices with the stated classification and reflected in RT-12 returns. In these circumstances, the ingredients required for invocation of the extended period, namely suppression of facts and intent to evade duty, were not established.

Conclusion: The demand was time barred and the invocation of the extended period was not sustainable; the assessee succeeded.

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