Invocation of extended period of limitation under proviso to ...

Extended limitation requires wilful suppression, not mere non-disclosure. Dept must prove positive act. Interpretation disputes don't invoke it. Bona fide belief /= mala fide.

Case Laws     Service Tax

August 2, 2024

Invocation of extended period of limitation under proviso to section 73(1) of Finance Act, 1994 requires wilful suppression of facts with intent to evade service tax payment. Mere non-disclosure in returns cannot presume intent to evade. Department must prove positive act indicating suppression. If dispute involves interpretation of legal provisions, extended limitation cannot be invoked. Assessee's bona fide belief, even if incorrect, does not render it mala fide. No suppression of facts from department. Extended limitation wrongly invoked. Impugned order set aside. Appeal allowed.

View Source