Disclosure in statutory returns defeats extended limitation where the Department already knew the relevant facts.

Clearances of capital goods disclosed in ER-2 returns put the relevant facts within the Department's knowledge, so suppression could not be alleged. On that basis, the statutory ingredients for invoking the extended period under section 11A were not established, and the demand was held time-barred. The order confirming duty, penalty and interest could not be sustained.

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Issues: Whether the demand was barred by limitation in view of disclosures made in the ER-2 returns, so that the extended period could not be invoked.

Analysis: The assessee's clearances of capital goods were disclosed in the ER-2 returns and the Department was already in possession of the relevant facts. In such circumstances, suppression of facts could not be alleged, and the ingredients necessary for invoking the extended period under section 11A were not established. The Tribunal followed the earlier decision in the assessee's own matter and the allied High Court principles relied upon before it.

Conclusion: The demand was held to be barred by limitation and the order confirming duty, penalty and interest could not be sustained.

Ratio Decidendi: Where the relevant facts are disclosed in statutory returns and are within the Department's knowledge, the extended period of limitation cannot be invoked in the absence of suppression or other statutory ingredients.

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