Limitation for show-cause notice fails where CENVAT credit facts were already disclosed and suppression is not established.

A show-cause notice issued years after CENVAT credit disclosure was held time-barred because the department already knew the material facts when the credit was declared in 2003. On that basis, suppression of facts was not made out, so the extended period of limitation was unavailable. The later notice issued in 2007 could not be sustained under the extended limitation regime, and the resulting demand was treated as unsustainable.

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Issues: Whether the show-cause notice was barred by limitation and whether the extended period could be invoked on the allegation of suppression of facts.

Analysis: The appellants had declared their availment of CENVAT credit in 2003, and the department was aware of the relevant facts at that time. Since no action was taken within the normal period, the later notice issued in 2007 could not be sustained on the basis of suppression. In the absence of suppression of facts, the extended period of limitation was not available to the department.

Conclusion: The show-cause notice was barred by limitation, the demands were unsustainable, and the appeal succeeded.

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