Proforma credit reversal demand barred by limitation where D-3 declaration and RT 12 returns disclosed all material facts

Proforma credit reversal demand was held time-barred because the assessee had filed the D-3 declaration, the officer verified it, and the receipt and utilisation of inputs were disclosed in RT 12 returns. On those facts, there was no suppression of material facts and the extended limitation period could not be invoked. The demand was therefore barred by limitation, and the appeal was rejected.

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Issues: Whether the demand for reversal of proforma credit was barred by limitation and whether the extended period was available on the ground of suppression.

Analysis: The respondents had taken proforma credit after filing the D-3 declaration, and the declaration had been verified by the officer. The receipt of inputs and the availment and utilisation of credit, even without gate pass, were reflected in the RT 12 returns. In these circumstances, there was no suppression of any material fact. Since the relevant facts were disclosed, the extended time limit could not be invoked.

Conclusion: The demand was time-barred and the extended period was not available. The appeal was rejected.

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