Extended limitation cannot be invoked without suppression or misstatement where the Revenue knew the relevant facts.

Extended period of limitation could not be invoked where the Revenue knew the relevant facts and the assessee acted under a bona fide belief regarding eligibility to Notification No. 108/95-C.E. The exemption was denied because the project was financed by Japan Bank for International Cooperation, which was not treated as a notified international organization, but the show cause notice still covered a period beyond the normal limitation period. As there was no suppression or misstatement, and similar certificates had been issued in comparable matters, the demand was held time-barred and the impugned order was set aside.

---

---

Issues: Whether the demand could be sustained by invoking the extended period of limitation on the allegation of suppression or misstatement, where the exemption under Notification No. 108/95-C.E. dated 28-8-95 had been denied.

Analysis: The notification benefit had been denied on the ground that the project was financed by Japan Bank for International Cooperation, which was not a notified international organization. On limitation, the show cause notice covered a period beyond the normal limitation period. The Court noted that the Revenue was aware that the supplies were made to a project financed by that bank and that similar certificates had been issued in other cases under a bona fide belief regarding eligibility. Relying on earlier identical Tribunal decisions, it was held that the facts did not justify alleging suppression or misstatement against the assessee so as to invoke the longer period.

Conclusion: The demand was barred by limitation and the extended period could not be invoked.

Final Conclusion: The denial of exemption could not survive because the demand itself was time-barred, resulting in setting aside of the impugned order and grant of relief to the assessee.

Ratio Decidendi: Where the Revenue is aware of the relevant facts and the assessee acts under a bona fide belief, the extended period of limitation cannot be invoked in the absence of suppression or misstatement.

---