Service tax limitation failure: demand was time-barred because extended period ingredients were not shown, and penalties fell with it.

Service tax demand was found unsustainable because the show cause notice was issued beyond the normal limitation period and failed to allege the elements required for the extended period, including wilful suppression, fraud or misstatement. The demand was therefore held time-barred and set aside, and the penalties were also set aside.

---

---

Issues: Whether the demand of service tax was barred by limitation.

Analysis: The notice was issued beyond the normal period of limitation and did not disclose the ingredients necessary to invoke the extended period, such as wilful suppression, fraud or misstatement. The demand was therefore not sustainable on limitation.

Conclusion: The demand was held to be time-barred and was set aside, with penalties also set aside.

---