Extended limitation cannot be invoked where purchase contracts and composite pricing terms were disclosed to the Department.

Extended limitation could not be invoked where the assessee had disclosed the purchase orders, contracts and pricing terms to the Department. The contracts showed composite prices inclusive of freight, insurance, packing and other levies, so the basis of valuation and the relevant contractual terms were already within departmental knowledge. On those facts, suppression of material facts was not established, and the demand could not survive on the extended period of limitation.

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Issues: Whether the extended period of limitation was invocable on the ground of suppression of facts when the purchase contracts and pricing terms were disclosed to the Department.

Analysis: The respondent had intimated the Department through letters enclosing the purchase orders and contracts, and the contracts themselves showed that the prices were composite prices inclusive of freight, insurance, packing and other levies. On these facts, the basis of valuation and the relevant contractual terms were already within the Department's knowledge. In such circumstances, the allegation of suppression was not established, and the demand could not be sustained by invoking the extended limitation period.

Conclusion: The extended period of limitation was not invocable, and the appeal by Revenue failed.

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