Extended limitation in service tax dispute upheld; no substantial question of law justified appellate interference.

Concurrent factual findings supported the service tax demand for short payment on telephone services, and the court accepted that non-production of complete records justified invocation of the extended period of limitation. The limitation objection therefore failed. The court further found that the controversy turned on facts and did not raise any substantial question of law, so no appellate interference was warranted. The departmental demand was sustained.

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Issues: (i) Whether the demand of service tax was barred by limitation and the extended period could be invoked. (ii) Whether any substantial question of law arose for consideration in the appeal.

Issue (i): Whether the demand of service tax was barred by limitation and the extended period could be invoked.

Analysis: The demand related to short payment of service tax on telephone services for the relevant period, and the authorities found that the appellant had not produced complete records for postpaid SIM sales, bill collection, and prepaid SIM sales. On the facts recorded, the short payment was detected during departmental audit, and the record did not support the plea that the case was outside the extended period. The limitation objection was therefore examined on the basis of the concurrent factual findings recorded by the authorities below.

Conclusion: The extended period of limitation was held applicable and the limitation challenge failed.

Issue (ii): Whether any substantial question of law arose for consideration in the appeal.

Analysis: The Court noted that the demand had been concurrently upheld by the lower authorities and that the controversy turned on factual findings regarding liability and limitation. In the absence of any substantial question of law, the appeal was not fit for interference under the appellate jurisdiction invoked.

Conclusion: No substantial question of law was found to arise.

Final Conclusion: The appeal failed on the threshold as well as on the merits recorded by the authorities below, and the departmental demand was sustained.

Ratio Decidendi: Where the authorities have recorded concurrent factual findings supporting tax demand and invocation of the extended limitation period, and no substantial question of law arises, the appellate court will not interfere.

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