The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) extended the period of limitation not invokable in the absence of wilful suppression to evade service tax.
Goyal & Co Construction Pvt Ltd, the appellant challenged the impugned order wherein the demand of Service Tax amounting to Rs. 13,55,364/- was confirmed under Commercial or Industrial Construction Service (for the year 2005-06) and the demand of Rs. 57,068/- was confirmed under Renting of Immovable Property Services (for the year 2009-10)
Shri Hardik Modh, Counsel appearing on behalf of the appellant submitted that the show cause notice has raised the demand, under the head of construction of residential complex services, whereas in the impugned order, the demand was confirmed under a different head.
The two-member bench comprising Mr Ramesh Nair, Member (Judicial) and Mr C L Mahar, Member (Technical) viewed that the show cause notice cannot be rectified by way of an Adjudication Order passed in such show cause notice.
As regard the demand of Rs 57,068/- under the head of renting of immovable property, the Tribunal found that the levy of service Tax on renting of immovable property was not free from doubt.
Moreover, the demand was raised based on scrutiny of the documents of the appellant during the audit. This also shows that the appellant has no intention to hide their transaction with the intent to evade payment of Service Tax, therefore, in the absence of any suppression of fact, fraud or collusion etc. the demand for the extended period cannot be sustained. Therefore, this demand for renting immovable property services is set aside on the ground of limitation.
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