Factual verification controls limitation and classification disputes, so the duty demand was remanded for fresh adjudication.

Where suppression, limitation, classification and duty liability depend on factual verification not examined by the original authority, the matter must be remanded for de novo adjudication. The approved classification lists, provisional SSI certificate, alleged disclosure to the department, earlier show-cause notice and the correct rate of duty all required fresh appraisal on evidence. The finding on extended limitation was therefore left open, and the duty classification and liability issues were returned for reconsideration with opportunity to raise all relevant pleas in accordance with natural justice.

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Issues: (i) Whether the demand could be sustained by invoking the extended period of limitation where the classification lists had been approved and the SSI certificate was provisional; (ii) whether the correct classification, rate of duty, and the effect of the earlier show-cause notice required fresh consideration.

Issue (i): Whether the demand could be sustained by invoking the extended period of limitation where the classification lists had been approved and the SSI certificate was provisional.

Analysis: The record showed that the dispute turned on whether the assessee had disclosed the provisional SSI certificate and whether the department had approved the classification lists after verification. Those matters were factual and had not been fully examined by the original authority. The question whether such approval and disclosure negatived suppression, and whether the demand was time-barred, required reconsideration on the evidence.

Conclusion: The issue was remitted for fresh adjudication and the finding on limitation was left open for de novo decision.

Issue (ii): Whether the correct classification, rate of duty, and the effect of the earlier show-cause notice required fresh consideration.

Analysis: The plea that duty had been paid under one heading at a higher rate, and that the department had proceeded under a different heading, involved factual verification as well as determination of the correct duty liability. The plea regarding the earlier show-cause notice was also not examined by the original authority. Since these aspects were necessary to determine the true duty liability, the matter could not be finally decided without a full reappraisal.

Conclusion: The matter was set aside and remanded for de novo consideration, with opportunity to raise the correct classification and duty-rate contentions.

Final Conclusion: The adjudication did not attain finality on merits and was returned for fresh decision after full consideration of the assessee's pleas in accordance with natural justice.

Ratio Decidendi: Where the questions of suppression, limitation, classification, and correct duty liability depend on factual verification not examined by the original authority, the matter should be remanded for de novo adjudication rather than finally decided on appeal.

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