Extended limitation under excise law applies when a notice clearly alleges fraud or suppression, even without exact formulaic words.

A show-cause notice can validly trigger the extended limitation period under the proviso to section 11A if, read as a whole, it clearly alleges the factual basis of fraud, suppression, wilful misstatement, or intent to evade duty. An exact ritual formula is unnecessary where the notice repeatedly s wrongful and fraudulent availment of Modvat credit on fake or forged invoices and evasion of excise duty; the substance of the allegation is enough to put the assessee on notice of the proviso's application.

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Issues: Whether the extended period of limitation under the proviso to section 11A could be invoked where the show-cause notice alleged fraudulent and wrongful availment of Modvat credit but did not expressly use the exact expression relating to suppression of facts.

Analysis: The show-cause notice, read as a whole, contained repeated allegations that the assessees had wrongly and fraudulently availed Modvat credit on the strength of fake or forged invoices and that the transactions were designed to facilitate evasion of excise duty. The legal requirement is that, for the extended period to apply, the notice must place the assessee on notice of the factual foundation attracting the proviso to section 11A, namely fraud, collusion, wilful misstatement, suppression of facts, or contravention with intent to evade duty. A precise ritualistic formula is not necessary if the substance of the allegation clearly communicates that the case falls within the proviso. On the facts recorded by the adjudicating authority, the fraudulent nature of the credit availment and the consequent evasion were specifically found.

Conclusion: The extended period of limitation was validly invocable, and the Tribunal erred in holding otherwise. The issue is decided in favour of the Revenue and against the assessees.

Ratio Decidendi: A show-cause notice satisfies the proviso to section 11A if, on a fair reading, it clearly alleges the factual ingredients of fraud or suppression with intent to evade duty, even without using any particular set formula.

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