ANAYLITICAL VIDEO:
INTRODUCTION

The dispute in Cosmic Dye Chemical v. Collector of Central Excise, Bombay arose from the interpretation of the proviso to Section 11A of the Central Excises and Salt Act, 1944, particularly the meaning of the expressions “wilful misstatement” and “suppression of facts.” The judgment is regarded as one of the leading authorities on the conditions under which the Department can invoke the extended period of limitation for recovery of excise duty.

The appellant, Cosmic Dye Chemical, was engaged in the manufacture of two categories of dyes: