The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), quashed service tax demand for extended period of limitation on architect services and management or business consultant services.
The appellant, M/s. Hospitech Management Consultants Pvt. Ltd is a registered assessee and had been filing returns under section 73(6)(i) of the Finance Act. The issue that arose for consideration is whether the extended period of limitation could have been invoked in the facts and circumstances of the case with regard to the two services
Prabhat Kumar, counsel for the appellant submitted that not only had the Commissioner committed an illegality in holding that the services provided by the appellant were not towards construction and were services provided either by an architect or by management or business consultant, but even otherwise the extended period of limitation could not have been invoked in the facts and circumstance of the case.
Harshvardhan, authorized representative appearing for the Department submitted that the order passed by the Commissioner does not suffer from any illegality.
From a perusal of sub-section (1) of section 73 of the Finance Act that where any service tax has not been levied or paid, the Central Excise Officer may, within one year from the relevant date, serve a notice on the person chargeable with the service tax which has not been levied or paid, requiring him to show cause why he should not pay amount specified in the notice.
The proviso to section 73(1) of the Finance Act stipulates that where any service tax has not been levied or paid by reason of fraud or collusion or wilful mis-statement or suppression of facts or contravention of any of the provisions of the Chapter or the Rules made there under with intent to evade payment of service tax, by the person chargeable with the service tax, the provisions of the said section shall have effect as if, for the word “one year”, the word “five years” has been substituted.
A Two-Member Bench comprising Justice Dilip Gupta, President and Hemambika R Priya, Technical Member observed that “The order passed by the Commissioner confirming the demand of service tax for the extended period of limitation in so far as the architect services and management or business consultant services are concerned is set aside.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
