Extended limitation unavailable in a classification dispute where declarations were filed and duty was paid on the declared heading.

In a classification dispute, the extended period of limitation could not be invoked where the assessee had filed declarations, cleared the goods under the declared tariff heading, and paid duty accordingly. Conflicting views on classification persisted until a Larger Bench settled the issue, so the assessee could not be treated as having suppressed facts or made a wilful misstatement with intent to evade duty. On that basis, the Revenue was denied use of the extended limitation period, and the demand was held barred by limitation.

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Issues: Whether the extended period of limitation could be invoked in a classification dispute where the assessee had filed declarations and cleared the goods on payment of duty under the declared tariff heading.

Analysis: The dispute concerned classification of the goods, and there had been conflicting views among different authorities until the matter was settled by a Larger Bench. In such circumstances, the assessee could not be treated as having suppressed facts or made a wilful misstatement with intent to evade duty. The goods were also cleared after filing declarations under the claimed classification and payment of duty accordingly.

Conclusion: The extended period of limitation was not available to the Revenue, and the demand was barred by limitation.

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