Commissioner of Service Tax Vs Naresh Kumar And Company Private Limited And Others (Calcutta High Court)
The Calcutta High Court dealt with a case involving Naresh Kumar & Co. Pvt. Ltd., where the Commissioner of Service Tax issued a show-cause notice demanding over ₹1 crore in service tax for the years 2004-2005. The case primarily centered around whether the extended limitation period under Section 73(1) of the Finance Act, 1994 could be invoked, which allows tax demands beyond the standard one-year period if fraud or willful misstatement is suspected. The respondent argued that the notice was time-barred and lacked the necessary grounds for invoking the extended period. The writ court initially ruled in favor of the respondent, stating that the notice failed to show any fraudulent intent or suppression of facts. The High Court upheld this decision, emphasizing that the notice was issued without sufficient evidence of willful evasion, thus making the extended limitation period inapplicable. The court also found that the writ petition challenging the show-cause notice was maintainable despite the availability of statutory remedies, as the issue of jurisdiction was in question. Consequently, the appeal by the Commissioner of Service Tax was dismissed. Also Read: Extended Limitation under CGST Act Not Invocable Without Clear Allegation of Wilful Misstatements: Calcutta HC
