Extended limitation barred where imported goods were already assessed and cleared, with no proof of suppression or intent to evade duty.

Where imported goods were assessed on bills of entry and cleared for home consumption, the department could not invoke the extended period of limitation to issue a later show cause notice absent proof of suppression or wilful misstatement with intent to evade duty. As the relevant facts were already within the department's knowledge at the time of assessment, reopening the final assessments merely to re-agitate the classification dispute was not sustainable. The demand was therefore held time-barred and the proceedings were set aside with consequential relief.

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Issues: Whether the extended period of limitation could be invoked for issuing the show cause notice and confirming the demand, when the imported goods had been assessed and cleared during the relevant period.

Analysis: The import had taken place between November 2017 and January 2018, and the bills of entry were assessed and the goods cleared for home consumption. On those facts, the later show cause notice dated 29.07.2020 was held to be barred by limitation. The reasoning followed the principle that, where all relevant facts were already within the department's knowledge at the time of assessment, re-opening the matter by alleging suppression or wilful misstatement is not sustainable. The Tribunal relied on its earlier view that final assessments cannot be reopened by invoking the extended limitation period absent proof of suppression with intent to evade duty.

Conclusion: The extended period of limitation was not invocable, and the demand proceedings were unsustainable.

Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief according to law.

Ratio Decidendi: Where imported goods have been assessed on the basis of the bills of entry and the department was already aware of the material facts, the extended period cannot be invoked merely to re-agitate classification without proof of suppression with intent to evade duty.

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