Limitation barred duty demand where exemption claim was fully disclosed in RT 12 returns and no suppression was shown.

Duty demand for the period 1-4-1986 to 23-4-1986 was found barred by limitation because the exemption claim and concessional assessment were disclosed in the RT 12 returns and assessed by departmental officers. Those returns put the relevant facts before the department in 1986 itself, so the department was treated as having knowledge of the claim at the time of assessment. In the absence of suppression of facts, the extended limitation period could not be invoked against the assessee, and the demand was held time-barred.

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Issues: Whether the demand of duty for the period 1-4-1986 to 23-4-1986 was barred by limitation.

Analysis: The exemption claim and the concessional assessment were reflected in the RT 12 returns, which had been assessed by the departmental officers. On that basis, the relevant facts were treated as disclosed in 1986 itself, and the department was held to have had knowledge of the claim while assessing the returns. In the absence of suppression of facts, the extended period could not be invoked against the assessee.

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

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