Extended limitation for jute cess recovery fails where approved classification lists and shifting departmental views negate suppression of facts.

Extended limitation could not be invoked to recover jute cess on captive consumption of jute twine, gunny cuttings and thread waste because suppression of facts was not established. The assessee had filed classification lists that were approved by the department, and the record showed shifting departmental views, followed by trade notices clarifying that cess was not leviable on captive consumption. In that setting, the non-furnishing of particulars did not amount to suppression sufficient to justify the larger limitation period, so the demand could not be sustained on that ground.

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Issues: Whether the extended period of limitation could be invoked for recovering jute cess on captive consumption of jute twine, gunny cuttings and thread waste, and whether suppression of facts by the assessee was established.

Analysis: The Revenue's stand on levy of cess on captive consumption had changed over time. The assessee had filed classification lists which were approved by the department, and the record showed shifting departmental views followed by trade notices clarifying that cess was not leviable on captive consumption. In these circumstances, the non-furnishing of particulars did not establish suppression of facts so as to justify the larger limitation period.

Conclusion: The extended period of limitation was not invocable and the demand could not be sustained on the ground of suppression; the issue was decided in favour of the assessee.

Ratio Decidendi: Extended limitation cannot be invoked absent suppression of facts when the department itself has approved classification lists and later altered its view on the levy.

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