Limitation and suppression: full disclosure in classification papers prevents extended-period demand where classification is disputed.

A mere claim to a particular tariff classification does not amount to suppression or misdeclaration where the goods are fully and truthfully described in the classification list and annexure. On those facts, the Revenue cannot invoke the extended period of limitation, and the duty demand falls as time-barred. The demand and penalty did not survive because the limitation ground was decisive, while the correctness of the disputed classification was left open and not adjudicated.

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Issues: Whether the duty demand was barred by limitation on the ground that the extended period could not be invoked for alleged suppression and misdeclaration.

Analysis: The goods in dispute were clearly described in the classification list as computer peripherals and parts, together with an annexure giving the full range of items manufactured. The Department did not dispute that the goods corresponded to the description furnished. Merely claiming a classification which is later not accepted does not amount to suppression. An assessee may seek classification under a particular heading, and it is for the Revenue to determine the correct classification after examining the full facts. On the materials recorded, the finding of suppression and misdeclaration could not be sustained, and the extended period of limitation was unavailable.

Conclusion: The demand was held to be entirely barred by limitation. The appeal was allowed in favour of the assessee, without adjudication on the correct classification of the disputed goods.

Final Conclusion: The duty demand and penalty did not survive because the invocation of the extended period was invalid, while the question of classification was left undecided.

Ratio Decidendi: A mere claim to a particular classification, when the goods are fully and truthfully described in the classification list, does not constitute suppression or misdeclaration for invoking the extended period of limitation.

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