Extended limitation period used to deny exemption, confiscate and penalise imported fabrics struck down; appeals allowed on limitation.

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....The dominant issue was whether the extended period of limitation was validly invoked for denying exemption, ordering confiscation, and imposing penalties in relation to imported fabrics. Applying the binding Division Bench decision, the Tribunal held that the Revenue failed to satisfy the Supreme Court tests for invoking the extended limitation period, and therefore the impugned adjudication order could not be sustained; the appeals were allowed on limitation. Having decided limitation in favour of the appellant, the Tribunal held it lacked jurisdiction to examine the merits of classification, exemption denial, confiscation, or penalties; consequentially, those demands and actions did not survive. - CESTAT....