Classification dispute and disclosed product description defeated suppression finding, so the demand failed on limitation.

A contested tariff classification, even where the department prefers Chapter 73 over Chapter Note 1 of Chapter 83, does not by itself establish misdeclaration. Where the assessee disclosed the product description and filed declarations that were acted upon by the department, suppression of facts with intent to evade duty is not made out absent concealment of the factual nature of the goods. On that basis, the demand was treated as time-barred and could not be sustained on limitation, with consequential relief following in favour of the appellant.

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Issues: Whether the demand was barred by limitation for want of misdeclaration or suppression of facts, and whether the appellant's classification dispute could be treated as an attempt to evade duty.

Analysis: The appellant had described the product and filed declarations, which had been acted upon by the departmental authorities. The finding against the appellant rested on an interpretation dispute regarding Chapter Note 1 of Chapter 83 and the adoption of Chapter 73 classification. A mistaken or contested classification based on the assessee's understanding of the tariff provisions does not, by itself, amount to misdeclaration of the product description. In the absence of any finding that the appellant concealed the factual description of the goods, suppression with intent to evade duty was not established.

Conclusion: The demand could not be sustained on limitation, and the appeal was allowed with consequential relief in favour of the appellant.

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