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2018 (11) TMI 352 - AT - Central ExciseExtended period of limitation - suppression of facts - Claiming SSI exemption - Suppression of turnover - it was alleged that the appellant had suppressed the fact regarding forfeited security amount from the Department. Held that:- There is no doubt that in the present case, the case was made out on the basis of examination of balance sheet. The amount in question was duly reflected in the audited balance sheet and profit and loss account of the Appellant - It is not the allegation of the Department that the appellant were showing different amounts in the balance sheet, ledgers and books of accounts in order to avoid payment of tax - The demand for extended period can be issued and confirmed only in cases where the non-payment of tax is by reason of fraud/ collusion/ willful mis-statement/ suppression of fact/ contravention of any statutory provision with intention of evade tax. The department has to establish with supporting evidence, the existence of factors indicating willful mis-statement / suppression of facts. The non-collection of duty from the customers also supported the bonafide belief. The entire dealings are on records and the payments they have made and received are through banking channel only. Further, the clearance had taken place under cover of Central Excise invoices which were duly entered in the Central Excise records and therefore intention to evade payment of duty is not establish. As the demand is based on the basis of information appearing in the balance sheet, suppression of such information with an intention to evade duty cannot be alleged and therefore, the demand raised by the Department is hit by limitation and as a result of which the extended period cannot be invoked in the facts of the present case - invocation of extended period not justified. The impugned order is set aside on the ground of limitation only without going into further merits of the matter - appeal allowed.
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