Extended limitation for service tax demand not available on suppression allegations; demand held time-barred.

Service tax demand for the relevant period was challenged as time-barred because the extended limitation period had been invoked on allegations of suppression. CESTAT followed its earlier decisions and the Board circular to hold that, on the same issue for the relevant period, the extended period of limitation was not available for raising service tax demand. The demand was therefore held barred by limitation and set aside in favour of the assessee.

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Issues: Whether the demand of service tax was barred by limitation on the ground that the extended period could not be invoked.

Analysis: The Tribunal noted that the demand related to the relevant period was raised by invoking the extended period on the allegation of suppression. It also relied on its earlier decisions, which had considered the Board circular and held that, on the same issue for the relevant period, the extended period of limitation was not available for demanding service tax.

Conclusion: The demand was held to be time-barred and was set aside in favour of the assessee.

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