Extended period invoked by Asstt. Commissioner i.e. 5 year for SCN

[KALIKANT JHA]

Two CA firm merged in 2013 and de-merged in 2018 within 5 years. Thus the status of both firm stood as before the merger. The merging firm became proprietary firm in 2019.

Firm during the merging period not collected service tax and not filed st returns and amount paid to. Govt. Now SCN issued to all partners using the power in extended period.

My query is as follws:-

1. Can department has right to issue Show Cause Notice to a) dissolved firm b) all retired partners in extended period. The period relates to F/y 2015-16 and 2016-17.

Expert Advice is solicited early.

[KASTURI SETHI]

What service is involved ?

AI Summary

Extended limitation for service tax allows issuance of show cause notices against dissolved firms or retired partners in merger cases. A merged firm (2013) de merged in 2018 and one constituent became proprietary in 2019; during the merged period it failed to collect service tax and did not file returns. The assessing officer invoked the extended period to issue a Show Cause Notice for the relevant assessment years, raising whether SCNs can be issued in the extended period against a dissolved firm and against partners who retired after the merged period.