Modvat credit limitation turned on no suppression where the final product was omitted from declaration but routinely disclosed in records.

A demand for reversal of Modvat credit was treated as time-barred because the final product, though omitted from the Rule 57G declaration, was itself a notified product eligible for credit on the common input. The record showed regular filing of RT 12 returns, gate passes and RG 23A Part II extracts, so the omission was not regarded as suppression with intent to evade duty. On that basis, the department was expected to detect the error within the normal limitation period, and the assessee succeeded on limitation.

---

---

Issues: Whether the demand for reversal of Modvat credit was barred by limitation on the ground that the final product had not been declared in the Rule 57G declaration.

Analysis: The undeclared product was itself a notified final product eligible for Modvat credit on the common input, and the record showed that the assessee had been filing RT 12 returns, gate passes and RG 23A Part II extracts. In these circumstances, the omission to include the product in the declaration was not treated as suppression with intent to evade duty, and the department ought to have detected the error within the normal period.

Conclusion: The demand was held to be time-barred and the assessee succeeded on limitation.

---