Extended excise limitation requires specific allegations of suppression or fraud, else the demand beyond normal time is time-barred.

Extended limitation for excise duty under Section 11A requires the show cause notice and record to specifically establish fraud, collusion, wilful misstatement, suppression of facts, or similar conduct with intent to evade duty. Where the notice contains no such allegation, the classification lists were departmentally approved, and invoices and RT-12 returns were filed, an omission such as non-inclusion of transportation cost in raw material valuation is treated as an unintentional error rather than conscious suppression. On that basis, the demand for the period beyond the normal limitation was held time-barred and unavailable to the department.

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Issues: Whether the demand for excise duty could be sustained beyond the normal period of limitation under Section 11A in the absence of a specific allegation of suppression, misstatement, fraud, or wilful withholding of facts in the show cause notice.

Analysis: The demand was founded on alleged short-valuation arising from non-inclusion of transportation charges in the cost of raw materials. The show cause notice and corrigendum did not contain any specific of suppression of facts, misstatement, fraud, or collusion. The classification lists had been approved by the department, invoices of raw materials were filed along with RT-12 returns, and the record did not show any deliberate withholding of information. In these circumstances, the omission to include transportation cost was treated as an unintentional error and not as conscious suppression. The legal position applied was that the extended limitation period can be invoked only where the ingredients required by the proviso to Section 11A are specifically established.

Conclusion: The extended period of limitation was not available to the department, and the demand for the period beyond six months was time-barred in favour of the assessee.

Ratio Decidendi: In excise proceedings, the extended limitation under Section 11A cannot be invoked unless the show cause notice and the record disclose fraud, collusion, wilful misstatement, or suppression of facts with intent to evade duty.

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