Extended limitation in central excise demand fails where final finding shows no suppression or intent to evade duty.

The extended period of limitation for central excise demand on performance incentive received from buyers was held not invokable because the adjudicating authority had already found no fraud, collusion, wilful misstatement, suppression of facts, or intent to evade duty, and that finding had attained finality. On that basis, the ingredients required to justify extended limitation were absent, so the demand was set aside.

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Issues: Whether the extended period of limitation could be invoked for the demand of central excise duty on performance incentive received from buyers.

Analysis: The adjudicating authority had dropped penalty under Section 11AC of the Central Excise Act, 1944, on the basis that there was no fraud, collusion, wilful misstatement, suppression of facts, or contravention with intent to evade duty, and that finding had attained finality as it was not challenged by the Revenue. In view of that final finding, the ingredients necessary to sustain invocation of the extended period were absent.

Conclusion: The extended period of limitation was held to be not invokable. The demand was consequently set aside and the appeal succeeded.

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