Extended limitation requires wilful suppression with intent to evade duty; disclosed records defeated the time-bar extension and demand.

Extended limitation under central excise was unavailable because the assessee had disclosed the relevant production, export, import, cost and value-addition particulars to the authorities, and DTA clearance was granted after scrutiny of those records. The demand was founded on the same disclosed figures, with no independent material showing a positive act of concealment. Suppression must be wilful and accompanied by intent to evade duty before the extended period can be invoked; a mere incorrect omission or disputed calculation is insufficient. The demand was therefore time-barred, and the consequential penalty could not be sustained.

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Issues: Whether the demand was barred by limitation and whether the extended period could be invoked on the allegation of wilful suppression of facts with intent to evade duty.

Analysis: The appellant had furnished the relevant production, export, import, cost and value-addition details to the Development Commissioner and the jurisdictional Central Excise authorities, and permission for DTA clearance was granted after scrutiny of those records. The demand was based on the same disclosed figures, and no independent material was shown to establish a positive act of concealment. The governing principle applied was that suppression must be wilful and must be coupled with intent to evade duty before the extended period can be applied; a mere incorrect omission or disputed calculation does not by itself justify such invocation.

Conclusion: The extended period of limitation was not available to the department, and the demand was time-barred.

Final Conclusion: The duty demand and consequential penalty could not be sustained because the limitation objection succeeded.

Ratio Decidendi: Extended limitation under central excise can be invoked only where suppression of facts is wilful and intended to evade duty; disclosure of material particulars to the authorities negatives such invocation.

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