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2023 (4) TMI 431 - AT - Service TaxTime barred demand - Demand of differential amount of service tax - works contract service - demand on the ground that the appellant has availed in-eligible benefit of notification by discharging the service tax liability by availing abatement of 67% and paid service tax only on the 33% of the gross amount of the bills - HELD THAT:- Appellant had been filing the ST-3 returns regularly to the Jurisdictional Range officers. It is on record that the said Service tax returns were scrutinized by the Jurisdictional officer on 17.01.2008 and he pointed out that there is short payment of service tax of Rs. 87,740/- - the fact that the appellant were charging service tax on 33% value after availing abatement on their services till 31st May 2007 and w.e.f. 01.06.2007 they have charged service tax on gross amount of contract @2% was in the knowledge of the Revenue itself from ST-3 returns. However show cause notice to the Appellant was issued on 02.03.2010. Inasmuch as the entire information was in the knowledge of the Revenue, the longer period of limitation is not available. In view of the facts the show cause notice should have been issued within the normal period of one year as prescribed under Section 73(1), whereas the show cause notice for the period 16.06.2005 to 30.09.2007 was issued on 02-03-2010 i.e. after prescribed limit of one year - there is no suppression of fact on the part of the appellant. Therefore, the demand raised in the show cause notice is clearly time-barred. Appeal allowed - decided in favour of appellant-assessee.
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