Extended limitation fails without suppression; voluntary duty payment also defeats mandatory penalty and interest.

Voluntary payment of duty before the show cause notice, together with invoice-based clearances and retention of the Central Excise licence, negatived any finding of deliberate suppression or intent to evade duty. In the absence of such suppression, the extended period of limitation could not be invoked, and the consequential mandatory penalty under Section 11AC and interest under Section 11AB could not be sustained. The appellate relief granted to the assessee was therefore maintained.

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Issues: Whether the extended period of limitation could be invoked on the facts found, and whether mandatory penalty and interest could be sustained.

Analysis: The goods had been non-dutiable for a prior period and duty was re-introduced later. The assessee retained the Central Excise licence, had cleared goods on invoices, and had voluntarily paid the duty involved before the show cause notice. On these facts, the allegation of deliberate suppression or mala fide intent to evade duty was not established. Once suppression failed, invocation of the extended period was not permissible, and the consequential demand of mandatory penalty and interest also could not survive.

Conclusion: The extended period was not invocable against the assessee, and the penalty under Section 11AC and interest under Section 11AB were rightly set aside.

Final Conclusion: The Revenue's challenge to the appellate order failed, and the relief granted to the assessee was maintained.

Ratio Decidendi: Where duty is voluntarily paid before notice and the record does not show deliberate suppression or intent to evade, the extended period cannot be invoked and consequential mandatory penalty and interest cannot be sustained.

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