Physical control removals and no suppression bar extended duty demands; the specific limitation rule governed and residuary provisions failed.

Duty demands were held time-barred where clearances were made under physical control after submission and certification of AR 1 forms, and the stocks had been disclosed and verified. In the absence of wilful suppression, wrongful declaration, or surreptitious removal, the matter fell only within error or mis-construction, attracting Rule 10. Because the removals were under physical control, the applicable limitation period was three months. Rule 9(2) could not be invoked, and the residuary Rule 10A was unavailable where Rule 10 governed the field. The appeals succeeded on limitation, and the confirmed demands were quashed with consequential refund relief.

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Issues: Whether the duty demands were barred by limitation and whether Rule 9(2) or Rule 10A could be invoked instead of Rule 10.

Analysis: The stocks had been disclosed and verified, the clearances were made under physical control after submission and certification of AR 1 forms, and no wilful suppression of facts, wrongful declaration, or surreptitious removal was established. On those facts, the case fell, at the highest, within error or mis-construction attracting Rule 10. Since clearances were under physical control, the applicable period was three months. Rule 9(2) was not available, and Rule 10A could not be used where the specific provision in Rule 10 governed the field.

Conclusion: The duty demands were time-barred and could not be sustained under Rule 9(2) or Rule 10A.

Final Conclusion: The appeals succeeded on limitation, and the confirmed demands were quashed with consequential refund relief where duty had been paid.

Ratio Decidendi: Where removals are under physical control and no wilful suppression or deliberate misdeclaration is established, the demand must be raised within the period prescribed by the specific limitation rule, and the residuary provision cannot be invoked to extend time.

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