{"id":3390,"date":"2025-04-10T21:19:35","date_gmt":"2025-04-10T15:49:35","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=3390"},"modified":"2025-04-10T21:19:35","modified_gmt":"2025-04-10T15:49:35","slug":"extended-period-of-limitation-cannot-be-invoked-as-assessee-had-bona-fide-belief-that-service-tax-was-not-payable-on-services","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/extended-period-of-limitation-cannot-be-invoked-as-assessee-had-bona-fide-belief-that-service-tax-was-not-payable-on-services","title":{"rendered":"Extended Period of Limitation Cannot Be Invoked as Assessee Had Bona Fide Belief That Service Tax Was Not Payable on Services"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000391146\/extended-period-of-limitation-cannot-be-invoked-as-assessee-had-bona-fide-belief-that-service-tax-was-not-payable-on-services\">Maheshwari Builders V. Commissioner of CE &amp; CGST, Lucknow (2025) 29 CENTAX 72 (TRI.-ALL)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>S\/Shri P.K. Choudhary<\/strong>, Member (J) &amp; <strong>Anil G. Shakkarwar<\/strong>, Member (T)<\/li>\n<li><strong>Shri Vineet Kumar Singh<\/strong>, Adv., for the Appellant.<\/li>\n<li><strong>Shri Santosh Kumar<\/strong>, Authorized Representative, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The assessee received amounts for services that were either covered by the negative list or eligible for exemption. Based on this, the assessee believed that service tax was not payable. However, the department alleged suppression of facts as the differential turnover was not declared in ST-3 returns. The issue before the Allahabad Tribunal was whether the extended period of limitation could be invoked by the department as the assessee had a bona fide belief that service tax was not payable on services covered by the negative list or eligible for exemption.<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>The Tribunal noted that the services were either covered by the negative list or exempt under Notification No. 25\/2012-ST, as amended. Despite the adjudicating authority acknowledging this, the demands were confirmed without proper evaluation. The Tribunal held that relying solely on Form 26AS without assessing exemptions or verifying service nature was insufficient. It was held that the assessee&#8217;s belief was genuine and supported by precedent. Therefore, the extended limitation period was not applicable, and the demand was unsustainable. The appeal was allowed, and the impugned order was set aside.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li>Assistant Collector v. National Tobacco Co. of India Ltd. \u2014 1978 (2) E.L.T.(J 416) (S.C.) \u2014 [Para 3]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2019%20(24)%20G.S.T.L.%20606%20(Tribunal)&amp;itemType=AP\">Kush Constructions v. Commissioner<\/a> \u2014 2019 (24) G.S.T.L. 606 (Tribunal) \u2014 [Paras 2, 4]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2006%20(197)%20E.L.T.%20465%20(S.C.)&amp;itemType=AP\">Nizam Sugar Factory v. Collector<\/a> \u2014 2006 (197) E.L.T. 465 (S.C.) \u2014 [Para 2]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2017%20(5)%20G.S.T.L.%2096%20(Tribunal)&amp;itemType=AP\">Sharma Fabricators &amp; Erectors Pvt. Ltd. v. Commissioner<\/a> \u2014 2017 (5) G.S.T.L. 96 (Tribunal) \u2014 [Paras 2, 4]<\/li>\n<\/ul>\n<h2><em>List of Notifications Cited<\/em><\/h2>\n<ul>\n<li>Notification No. 25\/2012-S.T., dated 20-6-2012 [Paras 1, 2, 4]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%209%2F2016-S.T.&amp;itemType=AP\">Notification No. 9\/2016-S.T.<\/a>, dated 1-3-2016 [Para 2]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Maheshwari Builders V. Commissioner of CE &amp; CGST, Lucknow (2025)&hellip;<\/p>\n","protected":false},"author":5,"featured_media":3399,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-3390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Extended Period of Limitation Cannot Be Invoked as Assessee Had Bona Fide Belief That Service Tax Was Not Payable on Services<\/title>\n<meta name=\"description\" content=\"The Tribunal held that a bona fide belief in service tax exemption bars the invocation of the extended limitation period, setting aside the demand.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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