Extended limitation cannot rest on suppression when the department already knew the material facts from an earlier notice.

The extended limitation period under Section 11A(1) of the Central Excise Act could not be invoked on the ground of suppression where the departmental authorities were already aware of the relevant facts through an earlier show cause notice. The later notices proceeded on the same or similar factual basis, so the same facts could not be treated as concealment by the assessee. The Court applied earlier precedent that once material facts are within the department's knowledge, a subsequent notice on the same facts cannot rely on suppression to extend limitation. The plea of suppression therefore failed, and the extended period was unavailable to the department.

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Issues: Whether, on the facts of the case, the extended period of limitation under Section 11A(1) of the Central Excise Act, 1944 could be invoked on the basis of alleged suppression of facts when earlier show cause notices on the same or similar facts had already been issued.

Analysis: The relevant facts relating to the clearance and manufacture of impure carbon dioxide were already within the knowledge of the departmental authorities when the first show cause notice was issued. The subsequent notices proceeded on the same or similar factual foundation. In such a situation, the same facts could not be treated as suppression by the assessee so as to justify invocation of the extended limitation period. The Court followed the earlier decisions holding that once the department was aware of the material facts, a later notice on the same facts could not rest on suppression for extending limitation.

Conclusion: The plea of suppression failed and the extended period of limitation was not available. The issue was decided in favour of the assessee.

Ratio Decidendi: Where the department had already been made aware of the material facts through an earlier show cause notice, a later notice on the same or similar facts cannot invoke the extended period of limitation on the ground of suppression of facts.

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