2017 (10) TMI 28

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....) Ltd., (main appellant) and the second appeal is filed by an individual. Both the appellants are contesting the confirmation of the demand on main appellant and also imposition of penalties on the individuals. 2. Heard both sides and perused the records. 3. On perusal of the records, it transpires that the payment of service tax liability is for the period July 1997 to June 2001. It is recorded by the lower authorities that the confirmed tax liability as short payment of service tax on the ground that there was mis-declaration of the value of the services rendered and subsequent calculation of the tax liability. The show-cause notice also invokes the extended period of limitation. 4. Learned counsel submits that during the relevan....

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....sioner or Dy Commissioner has to come to a conclusion and should have a reason to believe and come to a conclusion after verification of the assessment under Section 71 can issue a show-cause notice for demanding tax by invoking extended period of limitation. This legal question has not been addressed in its proper perspective by both the lower authorities. I find that learned counsel was correct in bringing to my notice that the issue is now squarely covered by the judgement of the Hon'ble High Court of Allahabad in the case of Naresh Kumar & Co Pvt Ltd (supra) wherein their lordships held as under: "34. The primary question for consideration is whether on the date of issue of notice, all the ingredients of Section 73(1)(a) of the Act w....