Extended limitation cannot apply without intent to evade where classification disclosure and departmental awareness support bona fide belief.

Extended period of limitation under the proviso to Section 11A(1) was held unavailable where the goods were described in the classification list as drive shafts for industrial fans, the department was aware of their nature, and an earlier tribunal view supported treatment of similar goods as fan parts. These circumstances established the assessee's bona fide belief and negatived any intention to evade duty, which is necessary for invoking the extended limitation period. The demand was therefore barred by limitation.

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Issues: Whether the extended period of limitation could be invoked for the demand of duty.

Analysis: The classification dispute was not pressed and the goods were accepted as transmission shafts. On limitation, the description of the goods in the classification list as drive shafts for industrial fans, the departmental awareness of their nature, and the earlier tribunal view treating similar goods as parts of fans supported the assessee's bona fide belief. These facts negatived any intention to evade duty, which is necessary for invoking the extended period under the proviso to Section 11A(1).

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

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