Extended limitation cannot be invoked where classification was disclosed and accepted, leaving duty demand, interest and penalty unsustainable.

Where an assessee had filed a classification declaration and the department had accepted the declared classification during the relevant period, suppression could not be alleged on those facts. Because the show cause notice relied on the extended period of limitation, the entire duty demand depended on establishing suppression; that basis was not made out. The extended period was therefore not invokable, and the duty demand, interest, and penalty were held unsustainable.

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Issues: Whether the extended period of limitation could be invoked for the duty demand when the assessee had filed a classification declaration and the department had accepted it.

Analysis: The assessee had filed a classification declaration declaring the goods and the declared classification had been accepted by the department during the relevant period. On those facts, the basis for alleging suppression was not made out. Since the show cause notice was issued by invoking the extended period, the demand for the entire period depended upon sustaining suppression, which was not established.

Conclusion: The extended period of limitation was not invokable and the duty demand, interest, and penalty were unsustainable.

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