Extended limitation under Section 11A requires specific allegations of suppression or intent to evade in the show cause notice.

The extended limitation under the proviso to Section 11A applies only where the show cause notice specifically alleges fraud, collusion, wilful misstatement, suppression of facts, or contravention with intent to evade duty. A notice must identify the precise statutory ground relied upon so the assessee can answer that case; a bare allegation of non-declaration of a waste or by-product is insufficient. In the absence of such specific pleadings, the extended period cannot be invoked and the demand based on the impugned notice fails. The Supreme Court's reasoning therefore turned on the adequacy of the notice's averments for limitation purposes.

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Issues: Whether the extended period of limitation under the proviso to Section 11A could be invoked without a specific averment in the show cause notice alleging fraud, collusion, wilful misstatement, suppression of facts, or contravention with intent to evade duty.

Analysis: The proviso to Section 11A enlarges the normal six-month limitation only where the demand is founded on one of the specific defaults mentioned in that proviso. A notice seeking to rely on the extended period must therefore inform the assessee which particular allegation is relied upon, so that the assessee has an opportunity to meet that case. Mere non-declaration of a waste or by-product in the classification list, without an express allegation of intentional evasion or suppression, is insufficient to sustain invocation of the extended period. In the absence of such averments in the show cause notice, the departmental action could not be justified under the proviso.

Conclusion: The extended limitation was not available to the Revenue, and the demand based on the impugned notice could not be sustained.

Final Conclusion: The appeal failed, and the assessee succeeded on the limitation issue.

Ratio Decidendi: Where the Revenue seeks to invoke the extended limitation under the proviso to Section 11A, the show cause notice must specifically plead the particular statutory ground attracting that proviso; absent such pleading, the extended period cannot be applied.

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