Limitation bar on excise credit demand where facts were disclosed and no suppression or wilful misstatement was shown.

A demand for money credit under an excise notification was held time-barred because the show cause notice was issued more than six months after the relevant period. The record disclosed no suppression of facts or wilful misstatement, and the department already knew the material facts, including receipt of ethyl alcohol from another unit. As no evidence showed that information had been withheld, the extended limitation period was unavailable and the demand could not be sustained.

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Issues: Whether the demand of money credit under the excise notification was barred by limitation in the absence of suppression of facts or wilful misstatement.

Analysis: The demand period covered 1-11-1987 to 2-5-1988, while the show cause notice was issued on 19-6-1989, well beyond six months. The record disclosed no allegation of suppression or wilful misstatement, and the relevant facts regarding receipt of ethyl alcohol from another unit were already known to the department. The credit had also been allowed during the relevant period, and no material was produced to show that information had been withheld.

Conclusion: The demand was time-barred and the appeal was liable to be rejected.

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