Extended limitation for duty drawback recovery fails where drawback and interest were deposited and reported to the Revenue.

The extended period of limitation could not be invoked for a show cause notice seeking recovery of duty drawback where the appellant had already deposited the drawback with interest after the departmental objection and had informed the Revenue of the deposit. On those admitted facts, the prerequisite for invoking the extended period was not established, so the Department's demand beyond the normal limitation failed and the impugned order was set aside.

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Issues: Whether the extended period of limitation was available for issuing the show cause notice demanding recovery of duty drawback and appropriating the amount already deposited.

Analysis: The appellant had deposited the duty drawback along with interest after the departmental objection was raised and had intimated the Revenue about such deposit. On these admitted facts, the basis for invoking the extended period of limitation was not made out.

Conclusion: The extended period of limitation was not available to the Department. The impugned order was set aside and the appeal was allowed.

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