Extended limitation for suppression was sustained where non-disclosure in DFIA-related exports justified customs action.

Extended limitation under Section 28 of the Customs Act was upheld where the exporter was found to have suppressed material facts while obtaining DFIA benefits and exporting the goods. The notice alleged non-disclosure of the technical characteristics, quality and specifications of the essential oil used in the export product, and that omission was treated as a conscious act. Earlier findings had already recorded suppression and distortion of facts relating to the DFIA licences, so the department was justified in invoking the extended period. The remand from the High Court was confined to limitation and did not reopen the merits.

---

---

Issues: Whether the extended period of limitation under Section 28 of the Customs Act could be invoked on the allegation that the exporter had suppressed material facts while obtaining the duty free import authorisation and exporting the goods.

Analysis: The record showed that the show cause notice alleged non-disclosure of the technical characteristics, quality and specifications of the essential oil used in the export product, and the adjudicating authority had treated this non-disclosure as a conscious act. The earlier findings recorded suppression and distortion of facts in relation to the DFIA licences. In these circumstances, the Tribunal held that the department was justified in invoking the extended period of limitation. The remand from the High Court did not permit reconsideration of the merits already concluded and confined the Tribunal to the remaining issue of limitation.

Conclusion: The extended period of limitation was rightly invoked and the objection based on limitation failed, against the assessee.

---