Limitation barred duty demand where approved classification lists and full disclosure negated suppression or wilful intent to evade duty.

Duty demand was treated as time-barred because the Department had approved the relevant classification lists and the goods were described consistently with the contemporaneous trade notice on polyurethane foam waste, parings and scrap. Those approvals, together with full disclosure of facts and later acceptance of revised classification lists, negatived any allegation that the assessee had misled the Department. In the absence of suppression of facts or wilful intent to evade duty, suppression could not be attributed to the assessee, and limitation defeated the demand.

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Issues: Whether the demand of duty was barred by limitation in the absence of suppression of facts or wilful intent to evade payment of duty.

Analysis: The classification lists for the relevant period had been approved by the Department, and the goods had been described in accordance with the contemporaneous trade notice clarifying the classification of polyurethane foam waste, parings and scrap. The approval of revised and subsequent classification lists, after consideration of the trade notice and the disclosed facts, negatived the allegation that the assessee had misled the Department. On these facts, suppression could not be attributed to the assessee.

Conclusion: The demand was held to be barred by limitation and the issue was decided in favour of the assessee.

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