Extended limitation for service tax fails without suppression or intent to evade, where bona fide belief is supported by official records.

Extended limitation for service tax is available only where suppression of facts or misstatement with intent to evade tax is established. Here, a Board circular and a BSNL certificate indicating that the building was an administrative office for a Government of India enterprise supported the assessee's view that the activity was not commercial or industrial construction. In the absence of positive evidence of deliberate suppression or misstatement, the demand was treated as barred by limitation and set aside.

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Issues: Whether the demand of service tax was barred by limitation in the absence of suppression or misstatement with intent to evade tax, and whether the appellant's belief that the construction was non-commercial was bona fide.

Analysis: The longer limitation period is available only where the assessee acts with mala fide suppression or misstatement intended to evade tax. The Board's circular and the certificate issued by BSNL showing that the building was an administrative office building for a Government of India enterprise supported the appellant's understanding that the activity was not covered as commercial or industrial construction. No positive evidence was shown to establish suppression of facts or deliberate misstatement with intent to evade duty.

Conclusion: The demand was held to be hopelessly barred by limitation and was set aside.

Ratio Decidendi: Extended limitation cannot be invoked unless suppression or misstatement with intent to evade tax is established, and a belief reasonably supported by official materials may constitute bona fide belief.

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