Extended limitation unavailable where clearances were disclosed in returns and the department knew the facts; demand failed.

Extended limitation was unavailable where clearances were made on regular gate passes at nil duty and the relevant facts were disclosed in RT 12 returns. Since the department was already aware of the clearances, the non-issuance of demand within time could not be attributed solely to suppression by the assessee. On that factual basis, the duty demand and penalty could not be sustained by invoking the extended period, and the appeal was rejected in favour of the assessee.

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Issues: Whether the Revenue could invoke the extended period to sustain the duty demand and penalty in respect of clearances treated as pre-excise stock.

Analysis: The clearances were made on regular gate passes at nil rate of duty and the relevant facts were disclosed in RT 12 returns. The department was already aware of the clearances, and the failure to raise the demand in time could not be attributed solely to suppression by the assessee. On these facts, the extended period of limitation was not available.

Conclusion: The demand could not be sustained by invoking the extended period, and the appeal was rejected in favour of the assessee.

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