Extended limitation under Central Excise law applies to fraud and suppression allegations, leaving disputed facts to the tax authority.

Where a show cause notice under Section 11A of the Central Excise Act, 1944 alleges fraud, suppression of facts or wilful misstatement, the extended limitation regime applies and the notice is not treated as time-barred on that ground alone. Disputed questions about whether the petitioners were manufacturers or traders, and the relevance of the materials filed in reply, were considered matters for the excise authority rather than for writ determination. Reliance on authority concerning different rules was therefore misplaced. The writ challenge to quash the notice was rejected.

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Issues: Whether a show cause notice issued under Section 11A of the Central Excise Act, 1944 could be quashed as time-barred in a case alleging fraud, suppression of facts and wilful misstatement, and whether the writ petition should be entertained despite a factual dispute as to the petitioners' status.

Analysis: Section 11A distinguishes between ordinary cases and cases involving fraud, collusion, wilful misstatement, suppression of facts, or contravention with intent to evade duty. In the latter category, the extended limitation applies and the question of the relevant date depends on the disclosure of the alleged wrongdoing. The petition also raised a disputed factual issue as to whether the petitioners were manufacturers or traders, which required examination by the excise authority on the basis of the reply and material on record. The reliance on the earlier decision dealing with different rules was held to be misplaced because the present matter involved allegations of fraud.

Conclusion: The show cause notice was not liable to be quashed in writ jurisdiction, and the petition was dismissed.

Ratio Decidendi: Where a notice under Section 11A of the Central Excise Act, 1944 alleges fraud or suppression, the extended limitation regime governs and disputed factual questions should ordinarily be left to the statutory authority rather than being decided in writ proceedings.

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