2022 (8) TMI 407 - HC - GST

Validity of assessmnet order - extension period of limitation - wilful suppression of fact and fraud - intent to evade or not - HELD THAT - The Tribunal has recorded a finding of fact that there was no wilful suppression of fact and, therefore, the extended period of limitation was not available. The Tribunal, after detailed discussions and after referring various judgments in service tax, held that the nature of work carried out by the respondent-assessee was exempted. The Tribunal also referred to its earlier decisions on the point of exemption. The entire controversy is dealt with by the finding of fact and the settled position of law - no substantial question of law is involved in the impugned order of the Tribunal - Appeal dismissed.

Summary

Issues:
Appeal under Section 35G of the Central Excise Act, 1994 read with Section 83 of the Finance (No.2) Act, 1994 and Section 174 of the CGST Act, 2017 to set aside the final order dated 5/6.08.2021 in Service Tax Appeal No.70671 of 2016 passed by the Customs Excise and Service Tax Appellate Tribunal, Allahabad.

Analysis:
The assessing officer passed an assessment order for the years 2009-10 to 2013-14 invoking the extension period of limitation due to wilful suppression of fact and fraud to evade tax. However, the Tribunal found no wilful suppression of fact, making the extended period of limitation unavailable. The Tribunal determined that the nature of work by the respondent was exempted from tax and referenced previous decisions on exemption, leading to the conclusion that no substantial question of law was involved in the impugned order. Thus, the appeal was dismissed by the High Court.

This judgment highlights the importance of factual findings and the settled position of law in tax matters. It underscores the significance of establishing wilful suppression of fact to invoke the extended period of limitation for tax assessment. The Tribunal's detailed discussions and reference to previous judgments demonstrate a thorough analysis of the exemption status of the respondent's work, emphasizing the need for a comprehensive review of facts and legal precedents in tax disputes. The High Court's decision to dismiss the appeal signifies the adherence to established legal principles and factual determinations in tax cases, reinforcing the requirement for clear evidence and legal basis to challenge tax assessments.