Extended limitation under Section 28(4) refused where no collusion, willful misstatement or suppression-demand time-barred.

Invocation of the extended limitation under Section 28(4) of the Customs Act was examined in relation to reclassification of imported plastic parts; the legal standard requires non-payment or short payment to result from collusion, willful misstatement or suppression of facts. The record relied on declaration omissions and expert opinion but contained no specific findings establishing culpable conduct. Because the dispute was primarily tariff classification arising from self-assessment and the requisite culpability was not demonstrated, the extended period could not be invoked and the demand raised beyond the normal limitation period is time-barred.

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Issues: Whether the invoking of the extended period of limitation under section 28(4) of the Customs Act, 1962 for demand of customs duty, interest and penalty was validly sustained where the department sought to reclassify imported plastic parts from CTI 3926 90 99 to CTI 8708 99 00 for imports made during 28.08.2017 to 31.05.2019.

Analysis: The extended period under section 28(4) can be invoked only if non-payment or short payment of duty is shown to be by reason of collusion, willful misstatement or suppression of facts. The impugned order relied on alleged omissions in declarations and on expert opinions to characterise the importer's conduct as suppression; however, no specific findings established collusion, willful misstatement or suppression of facts. The matter before the Tribunal was primarily a dispute of tariff classification arising from the importer's self-assessment under a particular customs tariff item. The demand was raised beyond the normal limitation period and the record did not demonstrate the requisite culpable conduct that would justify application of the extended period.

Conclusion: Invocation of the extended period of limitation under section 28(4) of the Customs Act, 1962 was not justified; the demand raised beyond the normal period is time-barred. The appeal is allowed on the ground of limitation in favour of the assessee and the impugned order is set aside with consequential relief.

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