As per section 73(1) of the Chapter V of the Finance Act, 1994, department has to ascertain certain aspects before issuing show cause notice for the period beyond one year.

In the present case, honorable tribunal has held that:

The Show Cause Notice is bereft of any reasons to invoke the larger period. The Revenue has to bring out the proviso to larger period like suppression of facts, wilful mis-statement with an intend to evade the service tax. Such facts have not been brought out in the Show Cause Notice at all. Therefore, in terms of the above noted Supreme Court judgments, the demands for larger period cannot be confirmed.

(For more details visit - 2007 -TMI - 1559 - CESTAT,BANGALORE)

Extended limitation period: show cause notices must allege suppression or wilful misstatement to invoke longer service tax period. Tribunal found the show cause notice deficient because it did not plead facts justifying the extended limitation period, namely suppression of facts, wilful misstatement or intent to evade service tax; higher court authority requires such specific pleading before a notice for a period beyond one year may be issued.