Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1104 - AT - Service TaxShort payment of service tax - Transport of Goods by Road Service - suppression of facts or not - invocation of extended period of limitation - HELD THAT:- The show cause notice has been issued admittedly beyond the stipulated period of eighteen months - Admittedly, no allegation of suppression has been invoked against the Appellant in the show cause notice. Meaning thereby that the notice has been issued without there being any justification for invoking the extended period of limitation. Section 73 permits extended recovery for a period of upto five years in cases of fraud, collusion, wilful mis-statement, suppression of facts or contravention of the Finance Act or Rules with intent to evade payment of service tax. But for this purpose show cause notice must allege and state fraud, collusion, wilful mis-representation, suppression of facts, etc. - It seems that in this matter the extended period of limitation has been invoked in a mechanical manner without adducing any proof/evidence to establish that provision of Section 73 ibid are attracted. There must be some positive act from the side of the assessee to find wilful suppression. Mere failure to pay duty or disclose a transaction or a mere misstatement is not sufficient for invocation of the extended period of limitation unless it is due to any fraud, collusion or wilful misstatement or suppression of fact or contravention of any provision. There has to be a positive, conscious, and deliberate action intended to evade tax, e.g., a deliberate mis-statement or suppression in order to evade tax. The invocation of the extended period of limitation in the instant matter is erroneous and the show cause notice is itself illegal - Appeal allowed - decided in favor of appellant.
|