Customs limitation and extended period: demand failed where origin certificate was accepted and no suppression was shown.

Customs demand, interest and penalty were challenged on limitation, with the extended period under the Customs Act found unavailable on the facts. The importer had furnished a country of origin certificate issued by the competent authority of the exporting country, and the customs authorities accepted the documents at clearance. As the relevant facts on origin and value addition lay within the exporting-country authority's domain and no suppression or mala fide conduct was shown, notice had to be issued within the normal limitation period. The notice was therefore time-barred, and the impugned order was set aside in favour of the assessee.

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Issues: Whether the demand of customs duty, interest and penalty was barred by limitation and whether the extended period under the Customs Act, 1962 could be invoked on the facts of the case.

Analysis: The importer had produced a country of origin certificate issued by the competent authority of the exporting country, and the customs authorities accepted the documents at the time of clearance. The facts relevant to origin and value addition were within the domain of the exporting-country authority, and there was no material to attribute suppression or mala fide conduct to the importer. In the circumstances, the notice ought to have been issued within the normal period, and the invocation of the extended period was not justified. The order also noted that the retroactive check was not strictly complied with.

Conclusion: The demand was time-barred, the extended limitation could not be invoked, and the impugned order was set aside in favour of the assessee.

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