Extended limitation barred for exemption-based clearances where no suppression or intent to evade duty was established.

Extended period of limitation under excise law could not be invoked where clearances were made openly on statutory invoices under exemption notifications and supported by Naval Authority certificates. No suppression of material facts, misrepresentation, or intent to evade duty was shown, and the dispute turned on interpretation of the exemption notification with facts already within revenue's knowledge. On that basis, the demand was held time-barred and the connected adverse orders were set aside, with consequential relief to the assessee.

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Issues: Whether the extended period of limitation was invocable for demanding duty and imposing penalty in respect of clearances made under exemption notifications.

Analysis: The goods were cleared on statutory invoices under exemption notifications and supported by certificates issued by the Naval Authority. The record did not show that the certificates were procured by misrepresentation or that there was suppression of material facts with intent to evade duty. The demand arose from a dispute on interpretation of the exemption notification, and the relevant facts were within the knowledge of the revenue. In the absence of suppression, misstatement, or intent to evade, the extended period under the excise law could not be invoked.

Conclusion: The extended period of limitation was not invocable, and the demand was time-barred. The issue was decided in favour of the assessee.

Final Conclusion: The demand and the connected adverse orders were set aside, and the appeal succeeded with consequential relief.

Ratio Decidendi: Where clearances are made openly under exemption notifications and no suppression of facts or intent to evade duty is established, the extended period of limitation cannot be invoked.

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