Extended limitation in excise cannot be invoked without wilful suppression where declarations and assessed returns disclosed the facts.

Extended limitation under excise law cannot be invoked without wilful suppression or intent to evade where the classification list for the later period was approved, the manufacturing process remained unchanged, and RT-12 returns were regularly filed and assessed. On those facts, failure to file a revised classification list for the earlier period did not establish suppression or misdeclaration. The show cause notice was therefore time-barred, and both the duty demand and penalty were set aside.

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Issues: Whether the demand was time-barred and the extended period could be invoked on the allegation of suppression and misdeclaration, and whether the penalty could be sustained.

Analysis: The classification list for the later period had been approved, the manufacturing process had remained unchanged, and the RT 12 returns had been regularly filed and assessed. On these facts, the non-filing of a revised classification list for the earlier period did not establish wilful suppression or an intent to evade duty. The conditions necessary for invoking the larger limitation were therefore not made out.

Conclusion: The show cause notice was barred by limitation, the duty demand was set aside, and the penalty was also set aside.

Ratio Decidendi: Extended limitation under excise law cannot be invoked in the absence of wilful suppression or intent to evade when the relevant facts were otherwise reflected in approved declarations and assessed returns.

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