Suppression and extended limitation fail where RT 12 disclosures gave the department enough detail for exemption scrutiny.

Disclosure in RT 12 returns of clearances under separate chapter headings and the description of goods under each tariff heading was sufficient to inform the department of the relevant values for the exemption notification. On those facts, there was no suppression of material facts, so the extended period of limitation could not be invoked. The duty demand was therefore barred by limitation, and the penalty could not survive.

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Issues: Whether the demand of duty and penalty was barred by limitation on the ground that the assessee had suppressed material facts and the extended period of limitation could be invoked.

Analysis: The assessee had disclosed in the RT 12 returns the value of clearances under separate chapter headings and the description of goods falling under each tariff heading. The disclosed particulars enabled the department to know the relevant clearance values for the purpose of the exemption notification. On these facts, there was no suppression of information. In the absence of suppression, the extended period of limitation could not be applied.

Conclusion: The demand was barred by limitation and the invocation of the extended period failed. The duty demand and penalty were set aside in favour of the assessee.

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