Extended limitation for SSI exemption dispute rejected where brand name issue involved conflicting judicial views.

The dispute concerns denial of small scale industries exemption on the ground that goods were cleared under another person's brand name. The demand was issued by invoking the extended period of limitation, but the relevant period substantially pre-dated the show cause notice and the exemption issue had been the subject of conflicting judicial views. On those facts, the conditions for extended limitation were not met, so the demand was held time-barred and the assessee's entitlement could not be denied on limitation grounds.

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Issues: Whether the extended period of limitation was invokable for denial of small scale industries exemption on the basis of use of another person's brand name.

Analysis: The dispute related to entitlement to SSI exemption during a period when the legal position on use of brand name for different goods had conflicting views. The demand was raised by invoking the extended period, but the relevant period pre-dated the show cause notice by several years. In such circumstances, where the issue turned on interpretation of the exemption notification and there were divergent judicial views, the conditions for invoking the extended period were not satisfied.

Conclusion: The extended period of limitation was not invokable and the entire demand was barred by limitation, in favour of the assessee.

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