Extended limitation in central excise cannot be invoked where show cause notice rests on disclosed ER-1 returns.

Where a show cause notice is based on scrutiny of regularly filed ER-1 returns, the Revenue cannot invoke the extended period of limitation unless suppression of facts or comparable concealment is shown. Since the clearances were already disclosed in the returns, there was no material to justify the extended limitation period. The central excise demand was therefore held to be time-barred and was set aside in favour of the assessee.

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Issues: Whether the demand of central excise duty was barred by limitation on the ground that the show cause notice was based on scrutiny of ER-1 returns and, therefore, the extended period was not available to the Revenue.

Analysis: The demand arose from verification of the assessee's ER-1 returns, which disclosed the clearances in question. On that basis, there was no material to establish suppression of facts or any other circumstance justifying invocation of the extended limitation period. The notice, therefore, could not sustain a demand beyond the normal period.

Conclusion: The demand was held to be barred by limitation and was set aside in favour of the assessee.

Ratio Decidendi: Where the show cause notice is founded on information available from regularly filed returns, the extended period of limitation cannot be invoked in the absence of suppression or comparable concealment.

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