Mere non-disclosure in service tax returns doesn't prove intent to evade payment.

The Supreme Court ruled that non-disclosure of receipts in service tax returns does not automatically indicate an intent to evade tax. For the extended limitation period under Section 73(1) of the Finance Act 1994 to apply, there must be clear evidence of a deliberate attempt to evade duty. A genuine belief in non-liability, even if incorrect, is not considered malafide. In self-assessment, the assessee's judgment determines liability, and later revelations do not prove evasion intent. The Department could not apply the extended period against the assessee for April 2008 to March 2013, and the appeal was allowed. .....

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