Extended limitation under central excise fails where disclosures were complete and no deliberate suppression was proved.

Extended period of limitation under central excise law was considered unavailable where the assessee had disclosed the valuation basis through price declarations, RT-12 returns and cost accountant certificates accepted by the department. The demand rested on records already before the authorities, and a mere mistake in the costing certificate, without proof of deliberate suppression or intent to evade duty, was insufficient to justify extended limitation. With suppression not established, the related penalties and confiscation also could not stand, and the demand was treated as time-barred.

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Issues: Whether the extended period of limitation under Section 11A(1) of the Central Excise Act, 1944 was invocable on the allegation of suppression or misdeclaration, and whether the consequent penalties and confiscation could survive.

Analysis: The assessee had filed price declarations, RT-12 returns and cost accountant certificates, all of which disclosed the basis of valuation and were accepted by the department at the relevant time. The demand was founded on statutory records already placed before the department, and no material showed that any alleged mistake in the costing certificate was used by the assessee with intent to evade duty. Mere error in the accountant's certificate, without proof of deliberate suppression or mens rea, was insufficient to attract the extended limitation. Once suppression was not established, the foundation for penalties and confiscation also disappeared.

Conclusion: The extended period of limitation was not invocable and the demand was time-barred. The penalties and confiscation could not be sustained and the appeal succeeded in favour of the assessee.

Ratio Decidendi: Where the relevant facts are disclosed through statutory declarations and records, and there is no proof of deliberate suppression with intent to evade duty, the extended period of limitation under the central excise law cannot be invoked.

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