February 2012
(2011) 24 STR 717 (Tri.-Del.) — Commissioner of Central Excise, Allahabad v. A.P.S.M. Study Centre.
By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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The assessee provided commercial training and coaching service — The service taxable w.e.f. 1-7-2003 — Respondent received consideration towards services to be provided after 1-7-2003 — Show-cause notice for the period April to September 2003 issued on 20-7-2006 after extensive communications of the respondent with the department — Held, the demand was barred by limitation.
Facts:
The assessee provided commercial training and coaching services. The appeal was filed in relation to the fees received by the respondent during April, May and June, 2003 for the period after 1-7-2003, when the service was brought under the tax net. Show-cause notice was issued to the respondent on 20-7-2006 for the period April-September 2003. The Revenue claimed that the assessee suppressed facts since they had not disclosed the amount of consideration received prior to 1-7-2003 and also not filed ST-3 return for the relevant period.
Held:
It was held that the longer period could not be invoked on the grounds that an audit was conducted in 2004 and also, there was extensive communication with the Department, but a show-cause notice was issued only on 20-7-2006. Hence the demand was barred by limitation and the Revenue’s appeal was rejected.
