Honest mistake committed in maintenance of stock register can not be treated as fraud or willful mis-statement or suppression of facts – SC

C.C.E., Mangalore  Vs M/s. Pals Micro systems Ltd. (SC) – The department could not establish that there was any suppression of facts or a fraud on the part of the respondent-assessee. We find that the honest mistake committed in maintenance of stock register etc. was frankly admitted by the Managing Director of the respondent-assessee. There is no finding to the effect that there was a fraud or wilful mis-statement or suppression of facts. Thus, it is very clear that the notice was issued after expiry of the period of limitation.

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