Extended limitation and Modvat credit denial fail where no suppression or fraud is shown in the record.

Extended limitation for a show cause notice was not justified where the record showed no suppression, fraud, contumacious conduct or mis-statement, and there was no dispute about receipt of goods. Because the notice was issued beyond the normal limitation period on past transactions without facts supporting invocation of the extended period, the denial of Modvat credit based on triplicate and quadruplicate invoice copies could not be sustained. The assessee therefore obtained consequential relief.

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Issues: Whether the show cause notice invoking the extended period of limitation was sustainable and whether the disallowance of Modvat credit on triplicate and quadruplicate invoice copies could stand.

Analysis: The record disclosed no allegation of suppression, fraud, contumacious conduct, or mis-statement, and no case of non-receipt of goods. The notice was issued beyond the normal limitation period in respect of a past period, and the available facts did not justify resort to the extended period. In these circumstances, the foundation for confirming the denial of credit could not survive.

Conclusion: The invocation of the extended period of limitation was not justified, and the disallowance of Modvat credit could not be sustained. The appeal succeeded and the assessee obtained consequential relief.

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