Extended period could not be invoked where subsequent to filing of Bill of Entry, full facts were disclosed

Extended period could not be invoked where subsequent to filing of Bill of Entry, full facts were disclosed in letter addressed to Department

In the instant case, A.S. Moloobhoy & Sons (The Respondent) has filed the Bill of Entry showing the goods imported as one for “the purpose of ship repair”. Subsequently, the Respondent addressed a letter to the Department stating the full facts and the manner of use of imported goods.

The Department issued notice invoking extended period of limitation alleging that goods imported were not used for ‘ship repair’.

The Hon’ble Supreme Court held that it was not case of wilful misstatement, since all the facts and manner were disclosed in letter addressed to the Department. Hence, extended period could not be invoked.

(Bimal Jain, FCA, FCS, LLB, B.Com (Hons),  Email: bimaljain@hotmail.com)

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