Service tax limitation and extended period: Tribunal rejected the time-bar objection and remitted the demand for fresh merits adjudication.

Service tax limitation was not accepted as a bar where the Tribunal found that the extended period could be invoked if suppression or misstatement with intent to evade duty was established. The lower appellate authority had set aside the demand only on limitation without examining the merits. The Tribunal rejected the limitation objection and remitted the matter for fresh adjudication on merits after granting a reasonable opportunity of hearing.

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Issues: Whether the demand of service tax for the period July 2003 to December 2007 was barred by limitation, and whether the extended period could be invoked on the facts recorded.

Analysis: The demand had been set aside by the lower appellate authority solely on limitation. The Tribunal held that the demand could not be treated as time-barred on that ground, in view of the principle that the extended limitation period is available where suppression or misstatement with intent to evade duty is established. As no finding on the merits of the demand had been recorded by the lower appellate authority, the matter required reconsideration on merits after granting a reasonable opportunity of hearing.

Conclusion: The limitation objection was rejected, and the matter was remitted to the lower appellate authority for fresh adjudication on merits.

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