Bharat Electronics Limited CESTAT Quashes Extended Limitation Invocation in Defence Software Import exemption Dispute

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal set aside the customs demand raised against Bharat Electronics Limited in relation to exemption claimed on imported defence-related software forming part of the Long Range Surface-to-Air Missile System (LRSAM). 

The Tribunal held that the extended period of limitation under Section 28(4) of the Customs Act, 1962 could not be invoked in the absence of suppression, wilful misstatement, or intent to evade duty. Consequently, the entire demand, along with penalty and redemption fine, was quashed.