Limitation for tax show-cause notices depends on proof of suppression or intent to evade before extended time can apply.

A show-cause notice under Section 73(1) of the Finance Act, 1994 was held time-barred because it was issued beyond one year from the relevant date and the department failed to justify invocation of the five-year extended period. The proviso applies only where non-payment or short payment is linked to fraud, collusion, wilful misstatement, suppression of facts, or contravention with intent to evade tax. On the materials already available, including prior correspondence, suppression was not established and the initial burden to bring the case within the proviso was not discharged. The notice was quashed and the challenge succeeded.

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Issues: Whether the show-cause notice under Section 73(1) of the Finance Act, 1994 was barred by limitation and whether the extended period of five years could be invoked on the facts alleged.

Analysis: The notice was issued beyond one year from the relevant date. The statutory scheme permits extension to five years only where non-payment or short payment is attributable to fraud, collusion, wilful misstatement, suppression of facts, or contravention of the Act or rules with intent to evade payment. On the contemporaneous materials, including correspondence already available to the department, the Court found no established suppression of facts and no adequate basis to invoke the extended period. The department had not discharged the initial burden of bringing the case within the proviso to Section 73(1).

Conclusion: The notice was time-barred and the extended limitation period was not available; the challenge to the notice succeeded.

Final Conclusion: The revenue appeal failed, and the quashing of the show-cause notice was sustained.

Ratio Decidendi: The proviso extending limitation under Section 73(1) can be invoked only on proof of the specified culpable circumstances, and mere non-registration or non-payment does not by itself establish suppression of facts with intent to evade.

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