Extended period of limitation cannot be invoked where ST-3 returns disclosed abatement and CENVAT credit details.

Disclosure of the availment of abatement under Notification No. 1/2006-ST and the related CENVAT credit details in ST-3 returns placed the relevant facts before the Department. On those facts, suppression of facts with intent to evade service tax was not established, so the statutory conditions for invoking the extended period of limitation were not met. The demand was therefore barred by limitation and the assessee succeeded on the limitation issue.

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Issues: Whether the extended period of limitation could be invoked for the service tax demand when the assessee had disclosed the availment of abatement and the relevant credit details in the ST-3 returns.

Analysis: The assessee had filed ST-3 returns reflecting the benefit claimed under Notification No. 1/2006-ST and had also disclosed the CENVAT credit taken in the prescribed columns. Once the relevant facts were available in the returns, the Department was put to notice of the availment of credit and the alleged wrong availment of abatement. On those facts, suppression of facts with intent to evade payment of service tax was not established, and the statutory conditions for invoking the extended period were not satisfied.

Conclusion: The extended period of limitation was not invocable and the demand was barred by limitation, in favour of the assessee.

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