The Kolkata bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the demand for service tax on the ground of Limitation.
Verve Consulting Private Limited, the appellant assessee was engaged in providing services as a Management Consultant, and the assessee appealed against the order passed by the Commissioner for confirming the demand of service tax along with interest and penalty.
Shreya Mundhra, the counsel for the assessee contended that no allegation of wilful suppression, misstatement, fraud, or collusion had been made in the show cause notice.
Further submitted that in the absence of any such allegation in the show cause notice, an extended period of limitation cannot be invoked.
S.S.Chattopadhyay, the counsel for the department relied on the decisions made by the lower authorities and contended that the demand of service tax raised by the department was as per the law and liable to be sustained.
The Bench observed that the entire demand had been based upon the Audit observation without any independent examination and the show cause notice not alleging any wilful suppression or fraud or collusion on the part of the assessee.
The two-member bench comprising Ashok Jindal (Judicial) and K.Anpazhakan (Technical) quashed the entire demand for service tax raised by the department on the ground of limitation while allowing the appeal filed by the assessee.
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