Limitation for service tax demand fails where there is no suppression of facts or intent to evade tax.

Service tax demand on scientific or technical consultancy and technical testing and analysis was held time-barred because the record did not establish suppression of facts with intent to evade tax. The appellant, a government-constituted registered society engaged in project-related research and field work for government bodies, had penalties under Section 80 of the Finance Act, 1994 set aside, which supported the absence of wilful intent. On that basis, invocation of the extended limitation period for the show cause notice dated 22.11.2005 was unsustainable, and the demand could not be sustained.

---

---

Issues: Whether the demand of service tax on scientific or technical consultancy and technical testing and analysis was barred by limitation.

Analysis: The appellant was a registered society constituted by the Government and was engaged in project-related research and field work for Government bodies. The record did not show suppression of facts with intent to evade tax. The setting aside of penalties under Section 80 of the Finance Act, 1994 also supported the absence of such intent. In these circumstances, invocation of the extended period for the show cause notice dated 22.11.2005 was not sustainable.

Conclusion: The demand of service tax on scientific or technical consultancy and technical testing and analysis was barred by limitation and could not be sustained.

---