Service Tax Extended Period Not Applicable When Cenvat Credit Disclosed in ST3 Returns Under Section 73(1)

CESTAT ruled that extended limitation period under Section 73(1) of Finance Act was not applicable as appellant disclosed Cenvat credit in ST3 returns, showing no willful suppression of facts. Revenue failed to establish fraud, collusion, or intent to evade service tax payment. While appellant erred in credit availment, the error was inadvertent as registration occurred only in September 2013. Mandatory penalties were not sustainable absent extended period invocation. Court distinguished from GAIL case where deliberate misclassification constituted tax evasion strategy. Entire demand being beyond normal limitation period was set aside, leaving merits unexamined. Appeal allowed due to lack of deliberate evasion intent. .....

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