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2016 (11) TMI 519 - AT - Service TaxCENVAT credit - ‘rent-a-cab’ service - suppression of facts - Held that: - Suppression of facts with intent to evade tax/duty for invoking the extended provision to recover duty/tax cannot be straitjacketed into a particular set of circumstances. Each evaluation is dependent on the particular set of facts peculiar to the case in dispute - In essence, the claim is that the service tax authorities could not be presumed to be aware of every aspect of the functioning of the assessee. The denial of CENVAT credit is sought on the basis of interpretation of definitions in the CENVAT Credit Rules, 2004. The statutory provisions in section 73 of Finance Act, 1994 are amply clear in permitting the extension of period of limitation only in the event of fraud, collusion, willful misstatement, suppression of facts, or any other contravention with intent to evade tax. Interpretational disputes and these specifically enumerated situations are mutually exclusive. The provision for extending the period of limitation was originally enacted because suppression of fact, willful misstatement et al cannot be ruled out in discharge of duty/tax liability. That, in the present context, would entail application of that provision to the utilization of CENVAT credit towards discharge of tax liability which is not in dispute here. The applicability of section 73 to rule 14 of CENVAT Credit Rules, 2004 is qualified by the expression ‘mutatis mutandis’ besides admitting to two mutually exclusive possibilities. In the context, it is more pertinent to note that suppression of fact is not the mirror image of lack of awareness by the tax authorities for, if that were to be so, the statutory provision of section 73 of Finance Act, 1994 relating to the normal period of limitation would be redundant as would the dichotomy specified in rule 14 of CENVAT Credit Rules, 2004. The appeal of assessee is allowed to the extent of setting aside the demands that, despite being barred by limitation, were held to have been due for discharge by default - appeal of Revenue rejected.
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