Suppression in show cause notice is a factual finding, so extended limitation under excise law could not be referred as a legal question.

Allegations in a show cause notice must specifically disclose wilful misstatement or suppression before the extended limitation period under the proviso to Section 11A of the Central Excise Act, 1944 can be invoked. On the facts, the notice alleged clearance without licence, without classification or price lists, without records, without Departmental intimation, and without a small-scale exemption declaration, but the Tribunal found no allegation of wilful misstatement or suppression. That assessment turned on appreciation of the notice contents and was treated as a finding of fact. Accordingly, no referable question of law arose and the Revenue's reference application was rejected.

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Issues: Whether allegations in the show cause notice were sufficient to invoke the extended period of limitation under the proviso to Section 11A of the Central Excise Act, 1944, and whether the Tribunal's finding on the contents of the notice gave rise to a referable question of law.

Analysis: The reference was sought on the basis of the allegations that the assessee manufactured and cleared goods without licence, without filing classification or price lists, without maintaining records, without intimating the Department, and without filing a small scale exemption declaration. The Tribunal's earlier finding was that the notice contained no allegation of wilful misstatement or suppression as required by the proviso to Section 11A(1), and that the allegations pleaded were insufficient to attract the extended period. That finding was based on appreciation of the contents of the notice and was factual in nature.

Conclusion: No question of law arose for reference, and the Revenue's reference application was rejected.

Ratio Decidendi: A determination based on the interpretation and appreciation of the show cause notice as to whether suppression or wilful misstatement is alleged is a finding of fact, and in the absence of such allegation the extended period under the proviso to Section 11A of the Central Excise Act, 1944 cannot be invoked.

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