Limitation for show cause notices fails where records disclose no suppression or fraud, and the extended period cannot be invoked.

A show cause notice was held time-barred because the extended limitation period could not be invoked without suppression, fraud, or concealment of material facts. The assessee was a registered taxpayer maintaining regular books and filing periodical returns, and the demand was based on information already available from its records. The credit taken on CVD paid through DEPB was treated as a bona fide claim supported by judicial precedent, with no finding that any material return column was left blank or that relevant facts were withheld. The extended period was therefore invalid, and the demand could not be sustained.

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Issues: Whether the show cause notice was barred by limitation and whether the extended period could be invoked in the absence of suppression or fraud.

Analysis: The appellant was a registered assessee maintaining regular books of account and filing periodical returns. The demand was founded on information available from the appellant's records, and there was no finding that any material column in the returns had been left blank or that material facts were concealed. The credit taken on CVD paid through DEPB was treated as a bona fide claim, and the credit itself had support from judicial precedent. On these facts, the ingredients necessary to invoke the extended period of limitation were not made out.

Conclusion: The show cause notice was held to be time-barred. Invocation of the extended period was invalid, and the demand could not be sustained.

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