Approved classification lists defeat extended limitation absent clear suppression or mala fide intent to evade duty.

Approved classification lists under Rule 173B carry a presumption that the proper officer has examined the nature of the goods. Where the earlier lists were accepted and the later list retained the same substantive description, a handwritten addition of "Drawing Pins" by itself did not show an intention to mislead the Department. In the absence of clear material proving suppression or mala fide conduct to evade duty, the extended period of limitation could not be invoked and the duty demand for the relevant period was unsustainable.

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Issues: Whether the extended period of limitation could be invoked to sustain the duty demand when the classification lists for the relevant period had been approved by the proper officer and the later list had also been approved despite the description of the goods remaining substantially the same.

Analysis: The approval granted under Rule 173B of the Central Excise Rules carries a presumption that the proper officer had satisfied himself about the nature of the goods. The earlier classification lists had been accepted, and the classification list effective from 1-3-1989 also retained the typed description of the goods as Card Pins, Gill Pins and D.T. Pins. The mere addition of the words "Drawing Pins" in handwriting did not establish any intent to mislead the Department, particularly when the Department itself had approved the subsequent revised classification list in 1990. In these circumstances, no basis existed for alleging suppression or mala fide conduct so as to justify the longer period.

Conclusion: The extended period of limitation was not invocable, and the duty demand for the relevant period could not be sustained.

Final Conclusion: The appeal succeeded on limitation, and the impugned demand and penalty were set aside.

Ratio Decidendi: Where classification lists are approved by the proper officer, extended limitation for central excise demand cannot be invoked absent clear material showing suppression or mala fide intent to evade duty.

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