Extended limitation unavailable where exemption claim was disclosed and no suppression or intent to evade duty was shown.

Extended limitation for issuing a show cause notice cannot be invoked absent suppression, misstatement, fraud, or intent to evade duty. Where the taxpayer had informed the jurisdictional authority of proposed exemption availment, furnished relevant details, cleared goods only after such intimation, and regularly filed RT-12 returns, the conduct was bona fide and no material suppression was established. As the department learned of the alleged ineligibility only after the normal limitation period had expired, the extended period was unavailable and the duty demand could not be sustained.

---

---

Issues: Whether the extended period of limitation could be invoked for issuance of the show cause notice in the absence of suppression, misstatement, fraud, or intent to evade duty.

Analysis: The Appellant had informed the jurisdictional authority about the proposed availment of the exemption on the strength of the certificate, had furnished the relevant details, had made clearances only after such intimation, and had regularly filed RT-12 returns. These facts were not disputed. The department became aware of the alleged ineligibility only after the normal period for issuing notice had already expired. In such circumstances, the invocation of the extended period was held to be unjustified. The Appellant's conduct was treated as bona fide, and no material suppression with intent to evade duty was found.

Conclusion: The extended period of limitation was not available to the Revenue, and the demand could not be sustained.

---