Extended limitation under Central Excise law fails when material facts were already disclosed to the department.

Extended limitation under Section 11A(4) of the Central Excise Act applies only where the department proves fraud, wilful misstatement, collusion, or suppression of facts with intent to evade duty. Where the assessee had already informed the jurisdictional officers about completion of the exemption period, availment of Cenvat credit, and the relevant return disclosures, the material facts were within departmental knowledge and the extended period could not be invoked. On that basis, the show cause notice and consequent demand were treated as time-barred, and the demand was unsustainable.

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Issues: Whether the show cause notice and consequential demand for recovery of Cenvat credit were barred by limitation, the department having invoked the extended period under Section 11A(4) of the Central Excise Act, 1944.

Analysis: The assessee had informed the jurisdictional officers in November 2016 about completion of the exemption period, availment of Cenvat credit, and the details of credit reflected in returns. The record also contained the contemporaneous correspondence and a Chartered Accountant's certificate supporting the credit availment. In these circumstances, the facts giving rise to the dispute were already within the department's knowledge in November 2016. For invocation of the extended period, the department was required to establish the existence of fraud, wilful misstatement, collusion, or suppression with intent to evade duty. That burden was not discharged. Since issuance of notice within the normal period is the rule and invocation of the extended period is the exception, the demand could not be sustained.

Conclusion: The show cause notice was time-barred and the demand under the extended limitation period was unsustainable; the finding is in favour of the assessee.

Final Conclusion: The impugned order was set aside and the appeal succeeded on the ground of limitation.

Ratio Decidendi: The extended period of limitation under Section 11A(4) cannot be invoked unless the department proves the requisite elements justifying such invocation, and prior knowledge of the material facts defeats a time-barred demand.

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