Extended limitation in excise demands requires proven suppression or wilful misstatement, not mere absence of a supporting document.

Extended limitation under excise law could be invoked only on proof of suppression of material facts or wilful misstatement in the statutory declarations. Price lists showed the assessee's claim for the Notification No. 245/83-CE abatement, and prior approval of those price lists undermined any allegation of concealment. The mere absence of the DPCO document did not, by itself, establish suppression when the claim was otherwise disclosed on record. On those facts, the longer limitation period under Section 11A was not available and the demand was time barred.

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Issues: Whether the extended period of limitation under the excise law could be invoked on the footing that the assessee had suppressed material facts or made a misdeclaration while claiming the benefit of Notification No. 245/83-CE.

Analysis: The assessee had filed price lists declaring that the maximum retail price was fixed under the Drug Price Control Order, 1987 and had claimed the 15% abatement contemplated by the notification. The departmental authorities had approved the price lists from time to time, and the notice did not establish any positive suppression of material facts in the declarations filed under the excise procedure. The absence of the DPCO document did not, by itself, show suppression where the price lists on record disclosed the claim made by the assessee. Limitation under Section 11A could be extended only when the statutory ingredients for invoking the longer period were established, and those ingredients were not shown on the facts of the case.

Conclusion: The extended period of limitation was not available to the department and the demand was time barred; the issue was decided in favour of the assessee.

Final Conclusion: The impugned demand could not be sustained and the appeal succeeded with consequential relief.

Ratio Decidendi: The extended limitation period for excise demand cannot be invoked unless the department establishes suppression of material facts or wilful misstatement in the statutory declarations.

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