Judicial AnalysisMere Inaction or Failure Cannot Be A Reason to Invoke Limitation

In C.C.E. Meerut-II Versus M/s. Honda Seil Power Products Ltd.-2016 (5) TMI 1123 – CESTAT NEW DELHI, the Tribunal on the issue of limitation held that 

………It is pertinent to mention that the suppression of facts/ willful misstatement is a combined question of facts and law, and therefore, precedential value of various judgments on this issue has to be determined in the context of the facts of each case.

In case of CCE Vs. Chemphar Drugs Liniments [2002-TIOL-266-SC-CX], the Supreme Court held that “something positive other than mere inaction or failure on the assessee’s part or conscious withholding of information when assessee knew otherwise is required for invoking extended period”. ……….