2026-VIL-1746-CESTAT-CHE-ST
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SERVICE TAX CESTAT Cases

Service Tax - Invocation of extended period of limitation - Audit by Internal Audit Group noticed that the Appellant, rendering Testing, Calibration and Certification Services, had not discharged service tax liability for a part of the period - Show Cause Notice invoking the proviso to Section 73(1) of the Finance Act, 1994 was issued - Appellant contended that the demand was worked out from its own books of account and there was no suppression - Whether the Revenue was justified in alleging suppression and invoking the extended period of limitation and whether the tax demand is in order - HELD - A SCN that is wholly time-barred challenges the jurisdiction of the Adjudicating Authority and must be examined at the threshold, as an order passed without jurisdiction is a nullity which cannot be cured in appellate proceedings - The differential tax demand was worked out solely during audit upon verification of the books maintained by the Appellant. It is the settled position of law that suppression is to be established by the Revenue, and a mere allegation of non-payment of tax in time is not sufficient to invoke the extended period of limitation. The finding that the default was detected only on detailed verification of the accounts including invoices by audit itself indicates that the Revenue did not unearth anything to show factual suppression with an intent to evade tax. The extended period was therefore invoked without any justifiable reason. Limitation goes to the very root of the demand - Since the Show Cause Notice was issued beyond the normal period, the demand cannot be sustained - The impugned order is set aside and the appeal is allowed
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