Extended limitation applies where material duty facts are not disclosed in statutory records, and balance sheet figures alone do not count.

Extended limitation could be invoked where material facts affecting duty liability, including stock and credit particulars, were not disclosed in the statutory records; mere appearance of some figures in the balance sheet did not amount to disclosure to the Department. The Tribunal therefore rejected the time-bar objection and set aside the finding that the demand was barred by limitation. As the lower authority had not examined the merits, the matter was remanded for fresh adjudication after granting the assessee a reasonable opportunity of hearing.

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Issues: Whether the demand was barred by limitation and the extended period could be invoked where the relevant stock and credit details were not disclosed in the statutory records, and whether the matter required remand for decision on merits.

Analysis: The Tribunal held that the assessee's case stood on a different footing from a situation where all relevant particulars had been disclosed, because the Department was not bound to treat undisclosed stock and credit particulars as within its knowledge merely because some figures appeared in the balance sheet. On that basis, the finding that the demand was time-barred was set aside. As no adjudication on the merits had been made by the lower authority, the matter was returned for a fresh decision after giving the assessee a reasonable opportunity of hearing.

Conclusion: The objection of limitation was rejected, and the case was remanded for fresh adjudication on merits.

Ratio Decidendi: The extended period of limitation may be invoked where material facts affecting duty liability are not disclosed in the statutory records, and mere availability of information in a balance sheet does not by itself amount to disclosure to the Department.

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