Suppression and extended limitation under Central Excise fail where declarations disclose manufacturing details and put the department on notice.

Declarations describing the goods as air rifles, together with detailed manufacturing disclosures, put the department on notice that parts and final assembly were being carried out. Since the record already contained sufficient material for further enquiry, there was no withholding of facts with intent to evade duty and suppression could not be alleged. The extended period of limitation under Central Excise law was therefore unavailable, and the duty demand was barred by limitation. The absence of a personal penalty also supported the assessee's bona fides. On that basis, the demand was set aside and the appeal succeeded on limitation.

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Issues: Whether the extended period for recovery of duty under the Central Excise law could be invoked on the ground of suppression of facts, and whether the demand was barred by limitation.

Analysis: The declarations filed by the assessee described the goods as air rifles and also set out the manufacturing process in detail, showing manufacture of main components, wooden butts, metal components and final assembly. The record therefore disclosed that parts were also being manufactured, and the department had sufficient material on record to make further enquiries. The absence of a personal penalty also supported the assessee's bona fides. On these facts, there was no withholding of material information with intent to evade duty, so the longer limitation period could not be applied.

Conclusion: The invocation of the extended period was not justified and the demand was barred by limitation, in favour of the assessee.

Final Conclusion: The demand was set aside and the appeal succeeded on limitation.

Ratio Decidendi: Where the assessee's declarations and accompanying manufacturing details place the department on notice of the relevant facts, suppression cannot be alleged and the extended period for duty demand cannot be invoked.

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