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Issues:
1. Whether the demand for the first consignment is barred by limitation. 2. Whether the extended period of limitation under Section 28 of the Act applies to the first consignment. 3. Whether the second consignment is subject to duty payment and penalty. Analysis: Issue 1: The case involves a dispute regarding the demand for the first consignment being barred by limitation. The appellant argues that the demand is time-barred, while the department contends that the extended period of limitation applies due to alleged suppression of facts by the importer. Issue 2: The key point of contention is whether the extended period of limitation under Section 28 of the Act is applicable to the first consignment. The Commissioner invoked the extended period based on the importer's alleged suppression of information regarding the technical collaboration agreement with the German company. Issue 3: Regarding the second consignment, the appellant claims that no duty payment is required as they have not exercised the option to pay a fine for redemption. Consequently, the question of duty payment and the validity of confiscation and penalty imposed on the importer for the second consignment are in question. The Tribunal rejected the department's argument that the extended period of limitation applied to the first consignment. It emphasized that the notice under Section 28 can only be issued for duty short levied or not levied, and the importer's disclosure of the collaboration agreement should have alerted the department to the correct valuation. As the department accepted the declared value without considering the agreement, any alleged short levy did not result from importer's suppression. Regarding the second consignment, the appellant's decision not to clear the goods meant no duty payment was required. Consequently, the Tribunal ruled in favor of the appellant, setting aside the order of confiscation and penalty imposed on the importer for the second consignment. In conclusion, the Tribunal allowed the appeal, emphasizing that the extended period of limitation did not apply to the first consignment due to the department's oversight of the collaboration agreement. The decision also highlighted that no duty payment was necessary for the second consignment, leading to the reversal of the confiscation and penalty imposed.
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