SCN ISSUED FOR EXTENDED PERIOED

[Vinod jadhav]

An SCN (Show Cause Notice) was issued for the Financial Year 2014-15 on September 20, 2020. The SCN was issued due to a mismatch between the 26AS and ST-3 return.

The assessee has filed a NIL ST-3 return and has not recovered any service tax from the customers.

My question is, whether the period from April to September 2014 is already time-barred?

Can the department invoke the extended period in this case?

AI Summary

Extended limitation period requires proof of suppression to be invoked; return filing date controls the relevant limitation timeline.
The extended limitation period may be invoked only upon proof of suppression or fraud; mere mismatch between Form 26AS and a nil ST-3 or non-recovery from clients does not suffice. The relevant date for limitation is the date the periodical return is filed under the statutory framework, and persons with nil turnover governed by the Board's Master Circular were not required to file ST-3, a point that can be relied upon to contest time-bar and defective SCNs issued without adequate investigation.