Extended limitation period invalid where a show cause notice rested on change of opinion, not suppression or wilful misstatement.

The extended period of limitation could not be invoked for the show cause notice on clearance of ready mix concrete because the department had earlier treated the product as exempt or had already taken a view on the same controversy. As later judicial rulings settled the ready mix concrete and concrete mix issue, the subsequent notice was based on a change of opinion rather than fresh material. In the absence of collusion, suppression of facts, or wilful misstatement, the notice invoking the extended period was not maintainable and the matter was decided in favour of the assessee.

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Issues: Whether the show cause notice was validly issued by invoking the extended period of limitation.

Analysis: The demand related to clearance of ready mix concrete during March 2012, but the record showed that the department itself had earlier treated the product as exempt or had taken a view on the same controversy in prior proceedings. In that background, the subsequent notice proceeded only after the legal position on ready mix concrete and concrete mix had been settled by later judicial pronouncements. On these facts, the invocation of the extended period was not supported by any fresh material showing collusion, suppression of facts, or wilful misstatement, and the notice reflected only a change of opinion.

Conclusion: The show cause notice invoking the extended period of limitation was not maintainable and the issue was decided in favour of the assessee.

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