Extended limitation period by change of opinion invalid where legal interpretation admits rival views; recovery barred for the assessee.

An extended period of limitation invoked by way of change of opinion is not maintainable where the statutory condition precedent for its invocation is absent; accordingly such invocation cannot sustain recovery. Where the dispute turns on interpretation of law and rival views exist and have been taken to higher fora or Larger Benches, the extended period cannot be invoked and the claim is time-barred. Applying Coordinate Bench precedent, the show cause notice issued as a change of opinion is unsustainable and the entire period is barred by limitation, producing relief for the assessee.

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Issues: Whether the extended period of limitation could be invoked to sustain recovery of duty where the show cause notice was issued by way of change of opinion and the dispute involved legal interpretation with conflicting views taken up to higher forums.

Analysis: The decision applies the principle that an extended period of limitation invoked by way of change of opinion is not maintainable where there is no condition precedent for such invocation. It further applies the legal principle that when the matter turns on interpretation of law and rival views are possible and have been taken up to the Supreme Court or a Larger Bench, the extended period cannot be invoked. The reasoning follows a Coordinate Bench decision in the appellant's own earlier matter which held the show cause notice to be unsustainable on the ground of limitation.

Conclusion: The extended period of limitation cannot be invoked; the entire period is barred by limitation and the appeal is allowed in favour of the assessee with consequential relief.

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