SSI exemption dispute and branded castings led to limitation bar; extended period could not be invoked.

Denial of SSI exemption under Notification No. 8/2003-CE on the ground that the goods bore a third party's brand name did not justify invoking the extended period of limitation. The appellant relied on Circular No. 71/71/94-CX, which indicated that branded castings supplied to a customer for further manufacture, and not traded as such, would not by itself disentitle small scale exemption. As the availability of SSI exemption in such circumstances was itself disputed during the relevant period, suppression or wilful misstatement was not established. The demand was therefore barred by limitation and the extended period could not be applied.

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Issues: Whether the demand was barred by limitation where the exemption under Notification No. 8/2003-CE was denied on the ground that the goods bore the brand name of a third party.

Analysis: The appellant had relied on Circular No. 71/71/94-CX, which indicated that branded castings supplied to a customer for further manufacture, and not traded as such, would not by itself deny small scale exemption. The record showed that the issue regarding availability of SSI exemption in such circumstances was itself a matter of dispute during the relevant period. In that situation, invocation of the extended period of limitation was not justified.

Conclusion: The demand was held to be barred by limitation and the extended period was not invokable.

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