Extended period of limitation unavailable where entitlement was disputed and no prescribed invoice filing time existed

The extended period of limitation was not available where the dispute turned on entitlement and the adjudicating authorities had taken divergent views on that issue. As there was no legal requirement for the assessee to file invoices with the department within a prescribed time, the show cause notice and resulting demand could not be sustained under the extended limitation period. The Tribunal followed the same view taken in a similar matter and held that the demand was barred by limitation.

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Issues: Whether the show cause notice and the resulting demand were barred by limitation in the facts of the case.

Analysis: The appellant confined the challenge to limitation. The demand was raised by invoking the extended period, but the adjudicating authorities had taken divergent views on the entitlement issue, and there was no legal requirement for the assessee to file invoices before the department within a prescribed time. In these circumstances, the extended period was held to be unavailable. The same view had also been taken in a similar matter referred to by the Tribunal.

Conclusion: The extended period of limitation was not invokable and the demand was barred by limitation.

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