TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether the demand of service tax raised by the show cause notice issued beyond the normal limitation period was time-barred. (ii) Whether the remaining demand and penalty confirmed in respect of service tax not paid on output service could be interfered with.
Issue (i): Whether the demand of service tax raised by the show cause notice issued beyond the normal limitation period was time-barred.
Analysis: The relevant period was held to carry a normal limitation period of 18 months. The demand of Rs. 14,86,351/- was raised after expiry of that period, and the notice was therefore beyond limitation to that extent.
Conclusion: The demand to the extent hit by limitation was set aside in favour of the assessee.
Issue (ii): Whether the remaining demand and penalty confirmed in respect of service tax not paid on output service could be interfered with.
Analysis: A part of the demand was found to fall within the normal period, as service tax had not been paid on the output service. The confirmation of that portion of demand and the related penal action was not interfered with.
Conclusion: The remaining demand of Rs. 5,46,131/- and the penalty were sustained against the assessee.
Final Conclusion: The impugned order was set aside only to the extent the demand was barred by limitation, while the balance demand and penalty were maintained, resulting in partial allowance of the appeal.
Ratio Decidendi: A demand raised beyond the applicable normal limitation period is not sustainable to that extent, while demand falling within limitation may be upheld along with consequential penalty.
TaxTMI 
