Extended limitation under section 11A requires suppression or mala fide; full disclosure defeats the Revenue's demand.

The extended period of limitation under section 11A cannot be invoked unless the record establishes suppression of facts or mala fide conduct. Here, the assessee had disclosed the manufacturing activity, the nature of steam cleared outside the factory, the applicable tariff headings, the exemption notifications, and the reversal of credit. As the adjudicating authority did not address these disclosures and the legal position was then ambiguous, the Tribunal found that the conditions for extended limitation were not met. The demand was therefore barred by limitation, and the appeal failed because no substantial question of law arose from that factual finding.

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Issues: Whether the extended period of limitation under section 11A could be invoked in the absence of suppression of facts or mala fide on the part of the assessee.

Analysis: The assessee had disclosed the relevant manufacturing activity, the nature of the steam cleared outside the factory, the applicable tariff headings, the exemption notifications, and the reversal of credit during the relevant period. The adjudicating authority did not deal with these factual explanations before recording suppression. The Tribunal found, on appreciation of the record, that the relevant facts were known and that the then prevailing legal position was not free from ambiguity, with decisions supportive of the assessee having been in force. On that basis, the Tribunal held that the ingredients necessary for invoking the extended limitation period were not established.

Conclusion: The extended period of limitation was not available, and the demand was barred by limitation.

Final Conclusion: The appeal failed because no substantial question of law arose from the Tribunal's finding that the demand could not be sustained beyond the normal period of limitation.

Ratio Decidendi: Where the assessee has disclosed the relevant facts and the record does not establish suppression or mala fide, the extended period of limitation cannot be invoked merely because the Revenue disputes the merits of the credit demand.

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