Limitation period

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2013 Issue relates to April 11 to Sep 11. Filed HY return on Oct 25, 2011.
But Show Cause notice is issued by the Dept on 10.04.2013. Is this hit by limitation?.

Please reply.

Pratik Bhansali

Pratik Bhansali (Expert)
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09 November 2013 The limitation period is 1 year from relevant date (generally return date).

The said limitation of one year will be extended to five years to the department where any service tax has not been paid or has been short paid or short levied or erroneously refunded by reason of –
fraud; or
collusion; or
willful misstatement; or
suppression of facts; or
contravention of any of the provisions or the rules with intent to evade payment of service.

It will not be hit by limitation unless you prove that extended period cannot be applied which may be difficult.

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2013 Mr Pratik Bhansali,

In this case, the filing of half yearly ST3 return period April 11 to Sep 11 was extended upto 20.01.2012 by way of notification. In the meanwhile, on 28.05.2012, the Dept has amended the (Finance Act) provision of limitation period to 18 months from 12 months. In the said query it is stated that the SCN is issued on 10.4.13.

Assuming that there is no fraud or suppression whether the dept can still issue SCN on 10.4.13 by using the amendment provision of 18 months? If it is one year, it is time-barred.

In my opinion the sCN shd have been issued on or before 19.01.2013 (i.e 20.01.12, revised return filing date, plus 1 year).

Experts, please throw some light on this point.