Extended period of limitation fails where facts are known to the department and suppression with intent to evade duty is not proved.

The extended period of limitation cannot be invoked where the department already has the relevant facts and the record shows no proved suppression with intent to evade duty. The article notes that fabrication, erection and installation details for the silos, tank and piping were within the excise officers' knowledge through contemporaneous statements and records, and the notice was issued more than two years later. A bona fide belief that the erected structures were immovable and not dutiable further weakened any allegation of deliberate concealment. The demand was therefore held time-barred, and the finding of suppression was rejected.

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Issues: Whether the demand was barred by limitation and whether invocation of the extended period was justified on the basis of suppression of facts.

Analysis: The relevant facts relating to fabrication, erection and installation of the silos, tank and piping were already within the knowledge of the excise officers and were supported by contemporaneous statements and records. The notice was issued more than two years after the information had been furnished. On the facts, the structurals were of such a nature that their fabrication and erection could not be concealed, and there was a genuine basis for the belief that the goods, as finally erected, were immovable and not dutiable. The grounds for alleging deliberate suppression with intent to evade duty were therefore not established.

Conclusion: The extended period of limitation was not available and the demand was time-barred; the finding of suppression was rejected.

Final Conclusion: The impugned order was set aside on limitation, and the appeal succeeded with consequential relief.

Ratio Decidendi: Where the department already possesses the material facts and the record supports a bona fide belief against duty liability, the extended period cannot be invoked in the absence of proved suppression with intent to evade duty.

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