Revenue-neutral service tax dispute defeats invocation of the extended limitation period under indirect tax law.

Where the service tax paid by the assessee was available as corresponding Cenvat credit, the dispute was treated as revenue neutral. In such a revenue-neutral situation, the basis for invoking the extended period of limitation does not survive, and the extended period could not be applied. The issue was decided in favour of the assessee.

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Issues: Whether the extended period of limitation could be invoked when the service tax paid by the assessee was available as Cenvat credit, making the matter revenue neutral.

Analysis: The Revenue did not dispute that the assessee had paid the service tax and had also availed the corresponding Cenvat credit. On that basis, the dispute was held to be revenue neutral. In a revenue neutral situation, the basis for invoking the extended period of limitation does not survive.

Conclusion: The extended period of limitation could not be invoked. The issue was decided in favour of the assessee.

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