Extended limitation period fails where customs examination was open and exemption claim did not amount to suppression.

Open examination of the imported consignments by customs officers, followed by assessment and release, meant the importer's exemption claim could not, by itself, amount to suppression or misdeclaration with intent to evade duty. On that factual basis, the jurisdictional condition for invoking the extended period of limitation failed, so the show cause notice could not be sustained on limitation. As a result, the adjudication was set aside and the merits of classification were not examined.

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Issues: Whether the show cause notice invoking the extended period of limitation on allegations of suppression and misdeclaration was sustainable.

Analysis: The goods were not merely processed on a self-assessment basis. The records showed open examination of the imported consignments by customs officers, followed by assessment and release after such examination. In that factual setting, the importer's claim of exemption could not, by itself, amount to suppression with intent to evade duty. Since the jurisdictional basis for invoking the longer limitation period failed, the adjudication could not be sustained, and the merits of classification did not require examination.

Conclusion: The extended period of limitation was not invocable and the importer succeeded on limitation.

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