Extended limitation not available where a circular and prior tribunal rulings supported the assessee's valuation treatment.

The extended limitation period could not be invoked where the assessee's treatment of retained sales tax concession was supported by a CBEC circular dated 30.06.2000 and by earlier tribunal decisions taking the same view. On that basis, the assessee could not be treated as having suppressed facts or acted wrongly, and the later contrary view of the Supreme Court on valuation did not justify reopening the matter for the longer period. The consequential penalty also failed because the foundation for invoking extended limitation was absent.

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Issues: Whether the extended period of limitation could be invoked and the consequential penalty sustained where a Board circular and earlier tribunal decisions supported the assessee's treatment of sales tax concession retained by it.

Analysis: The relevant period was governed by a CBEC circular dated 30.06.2000 which stated that the amount of sales tax concession retained by the assessee was not required to be added to the assessable value. The assessee had also acted in accordance with earlier tribunal decisions taking the same view. In this background, the assessee could not be said to have suppressed facts or acted at fault, and the revenue could not invoke the extended period merely because the Supreme Court later took a different view on the valuation question.

Conclusion: The extended period of limitation was not invokable and the consequential penalty was not sustainable. The issue was decided in favour of the assessee.

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