Case Law Details
T.S. Motors India Private Ltd Vs Commissioner of CGST & Central Excise (CESTAT Allahabad)
Extended Limitation Period Cannot Be Invoked If SCN not mentions that suppression was with an intention to evade payment of service tax
The CESTAT, Allahabad in the matter of M/s. T.S. Motors India Private Ltd. v. Commissioner of CGST & Central Excise, Lucknow [Service Tax Appeal No. 70377 of 2018 dated June 17, 2022] set aside the order passed by Revenue Department demanding Service tax for alleged suppression of correct value of taxable service by invoking the extended period of limitation. Held that, the Show Cause Notice (“SCN”) has been issued without mentioning the reasons of the alleged suppression with an intention to evade payment of service tax. Further held that, extended period of limitation can only be evoked when “suppression” is shown to be wilful with intent to evade payment of service tax.
Facts:
M/s. T.S. Motors India Private Ltd. (“the Appellant”) is engaged in providing business auxiliary service. On scrutiny of the records of the Appellant for the period from 2004-2005 to 2007-2008 by Revenue Department, wherein, it was noticed that the Appellant had not paid service tax on several items of work, though these were part of the service rendered by the Appellant under business auxiliary service.
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