2018 (7) TMI 1719 - AT - Service Tax

Relevant date for issuance of SCN - filing of returns - Extended period of limitation - proviso to Section 73(1) of the Finance Act, 1994 - Held that - The due date for filing ST-3 becomes the relevant date and in the case of the ST-3 Return due for the period April to September, 2011, the last date was extended repeatedly from 25th October, 2011 to 6/01/2012 - the relevant date is to be considered as 06/01/2012 and hence even within the normal time limit of 18 months, the demand covering the period April to September 2011 will also get included in the demand - appeal allowed - decided in favor of Revenue.

Summary

Issues:
- Appeal against Order-in-Original regarding Service Tax demand and Cenvat Credit
- Invocation of extended period of limitation under proviso to Section 73(1) of the Finance Act, 1994
- Calculation of normal time limit under Section 73(1) based on the relevant date for filing ST-3 Returns

Analysis:
1. The appeal was filed by Revenue against an Order-in-Original regarding Service Tax demand and improper Cenvat Credit claimed by the respondent. The Department issued a show cause notice raising demand for Service Tax for the period 2008-09 to 2011-12. The adjudicating authority upheld the demand for a specific period but did not invoke the extended period of limitation under the proviso to Section 73(1) of the Finance Act, 1994. The appeal challenged this decision.

2. The Revenue argued that the normal time limit under Section 73(1) should be calculated based on the relevant date for filing ST-3 Returns, which was extended by the CBEC for the period April to September 2011. The due date for filing the returns was extended to 06/01/2012. Therefore, the Revenue contended that the demand for this period should also be included in the confirmed demand by the adjudicating authority.

3. The Tribunal considered the arguments and found merit in the Revenue's submission regarding the calculation of the relevant date for the normal time limit under Section 73(1). The due date for filing ST-3 Returns was extended to 06/01/2012 for the period April to September 2011. Consequently, the demand for this period should be included within the normal time limit of 18 months. Therefore, the appeal filed by Revenue was allowed, directing the adjudicating authority to requantify the Service Tax demand, including the period from April to September 2011, and to redetermine the interest and penalties levied under Section 76.

4. In conclusion, the Tribunal's decision favored the Revenue's argument regarding the calculation of the normal time limit under Section 73(1) based on the extended relevant date for filing ST-3 Returns. The appeal was allowed, and the demand for Service Tax was to be requantified to include the period in question, with a direction to redetermine the associated interest and penalties.