Suppression of assessable value justified extended limitation and sustained duty demand, interest and penalty.

Suppression of the correct assessable value with intent to evade duty was found on the facts because the valuation declared under Rule 173C of the Central Excise Rules, 1944 was lower than the prevailing consignment sale value and the correct value was not disclosed to the department. That deliberate omission justified invocation of the extended period of limitation and sustained the consequential liability to interest and penalty. The demand, interest, and penalty were upheld in favour of the Revenue.

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Issues: Whether the assessee had suppressed the correct assessable value with intent to evade duty, thereby attracting the extended period of limitation, interest, and penalty.

Analysis: The valuation declared under Rule 173C of the Central Excise Rules, 1944 was found to be lower than the prevailing value at the consignment sale point. The authorities below recorded clear reasons that the correct value was not disclosed to the department and that the omission was deliberate. On these facts, the conduct amounted to suppression with intent to evade payment of duty, making the extended period of limitation available to the department and sustaining the consequential liability to interest and penalty.

Conclusion: The issue was decided against the assessee and in favour of the Revenue; the demand, interest, and penalty were upheld.

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