Limitation in service tax disputes bars extended period where prior law and conflicting Cenvat credit rulings apply.

Service tax demand for 2007-08 to 2010-11 was held time-barred because the show cause notice was issued on 04.10.2012 and the extended limitation period could not be invoked. The existence of contrary decisions on Cenvat credit eligibility weighed against alleging suppression or invoking the extended period. The amendment to Section 73 of the Finance Act, 1994, increasing the limitation period from 12 months to 18 months with effect from 28.05.2012, was held inapplicable to the earlier disputed period. The entire demand was therefore barred by limitation, with consequential relief granted.

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Issues: Whether the service tax demand was barred by limitation and whether the extended period under the limitation provision could be invoked for the period in dispute.

Analysis: The demand related to the period 2007-08 to 2010-11, while the show cause notice was issued on 04.10.2012. In view of the contrary decisions on eligibility for Cenvat credit, the extended period was held to be unavailable. The amendment to Section 73 of the Finance Act, 1994, enhancing the time limit from 12 months to 18 months with effect from 28.05.2012, was found inapplicable because the relevant period was prior to that amendment.

Conclusion: The entire demand was held to be barred by limitation, the extended period was not invokable, and the appeal was allowed with consequential relief.

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