Extended limitation in central excise cannot apply without suppression or misdeclaration; demand held time-barred.

Extended limitation in central excise proceedings cannot be invoked absent suppression or misdeclaration of material facts. The Tribunal found that the appellant's conduct did not disclose any such suppression, and that the demand rested on a later departmental circular rather than facts warranting extended limitation. The demand was therefore held time-barred and the appeal succeeded. As the matter was disposed of on limitation, the merits of excisability were not examined.

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Issues: Whether the duty demand and penalty were sustainable when the demand had been raised by invoking the extended period of limitation.

Analysis: The appellant's conduct did not disclose misdeclaration or suppression of relevant facts. The demand was founded on a later departmental circular and the Tribunal held that, on the facts, invocation of the extended limitation period was not justified. Since the case was disposed of on limitation, the merits of excisability were not examined.

Conclusion: The demand was held time-barred and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Extended limitation in central excise matters cannot be invoked in the absence of suppression or misdeclaration of material facts.

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