Excise limitation and suppression of facts: extended period could not be invoked where classification disclosures were made.

Excise demand was held to be time-barred where the show cause notice was issued long after the relevant period and the department sought the extended limitation period on allegations of suppression and clandestine removal. The assessee had filed classification lists and acted on then-prevailing governmental and tribunal views that the printed cartons were not dutiable in the manner later asserted. On those facts, non-payment of duty was not treated as deliberate suppression, so the conditions for invoking the longer limitation period were not met.

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Issues: Whether the excise demand was barred by limitation and whether the extended period could be invoked on the basis of suppression of facts or clandestine removal.

Analysis: The demand related to a past period, while the show cause notice was issued much later. The record showed that the assessee had filed classification lists and had proceeded on the understanding, supported by then-prevailing governmental and tribunal views, that the printed cartons were not dutiable in the manner later asserted. In these circumstances, non-payment of duty could not be attributed to a deliberate suppression of facts or clandestine clearance. The prerequisites for invoking the longer limitation period were therefore absent.

Conclusion: The demand was time-barred and the extended period could not be sustained. The issue is decided in favour of the assessee.

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