COLLECTOR OF CENTRAL EXCISE, HYDERABAD. vs CHEMPHAR DRUGS & LINIMENTS, HYDERABAD.

The Supreme Court held that under Section 11A of the Central Excise Act, 1944, a demand for excise duty can only be sustained beyond six months if it is established that the duty was not levied or paid due to fraud, collusion, or suppression of facts. The Court dismissed the Revenue's appeal, affirming that the respondent's failure to disclose certain information did not constitute sufficient grounds for extending the limitation period for duty recovery. The ruling clarified the conditions under which the five-year limitation period applies for excise duty demands.