Extended limitation for duty demand unavailable without suppression allegation; penalty deleted and demand confined to normal period.

In the absence of any allegation of suppression or comparable grounds, the extended limitation period could not be invoked and the duty demand was confined to the normal six-month period from approval of the classification list. The authority could proceed only within that normal period, and the accepted classification supported the restricted demand. Penalty was not sustainable where no aggravating circumstances were established and the demand was limited to the normal limitation period. The duty demand for six months was upheld, while the penalty was set aside.

---

---

Issues: Whether the duty demand could be confined to the normal period without a fresh notice alleging suppression for invoking the extended period, and whether the penalty imposed on the assessee was sustainable.

Analysis: The demand had earlier been set aside for traversing the six-month period, and the matter was remitted for such action as the jurisdictional Collector deemed fit. Where the authority found no basis for alleging suppression or other grounds to invoke the extended period, it could proceed only within the normal limitation period. In the absence of any allegation of suppression in the communication issued by the Collector, the demand was sustained only for six months from the date of approval of the classification list. As the classification itself had been accepted by the assessee, the limited demand was upheld.

Conclusion: The duty demand for six months was sustained, but the penalty was set aside.

Final Conclusion: The appeal succeeded only in part, with the monetary penalty deleted while the restricted duty demand remained enforceable.

Ratio Decidendi: In the absence of an allegation of suppression or similar grounds, the adjudicating authority cannot invoke the extended period of limitation, and penalty is not warranted where the demand is confined to the normal period and no aggravating circumstances are established.

---