Commissioner Of Central Excise, Mumbai vs Lajya Dyeing & Bleaching Works

The Supreme Court upheld the Tribunal's decision that the extended period of limitation under Section 11A of the Central Excise Act, 1944, was not applicable as there was no evidence that the assessee knowingly mis-declared the fabric composition. The Court emphasized that processors are not legally required to verify the correctness of declarations made by manufacturers. Consequently, the demand for differential duty and penalties imposed on the assessee were set aside, affirming the Tribunal's finding of fact.