Extension of Limitation cannot be invoked when there is no intention to evade payment of Service Tax

Last updated: 05 October 2023
Quick Summary
The CESTAT, Ahmedabad ruled that a charitable trust, M/s. Sophisticated Instrumentation, was not liable for service tax under the 'Commercial Training or Coaching Services' category. The tribunal found that the trust operated in good faith, believing they were not covered by the service tax provisions, and had not intentionally evaded payment. Consequently, the extended five-year limitation period for demanding service tax was deemed unjustified and the appeal was allowed on these grounds.

Court :
CESTAT, Ahmedabad

Brief :
The CESTAT, Ahmedabad in the case of M/s.Sophisticated Instrumentation v. C.C.E & S.T.-Vadodara-I [Service Tax Appeal No. 11477 of 2013 dated September 22, 2023], allowed the appeal and ruled that the assessee is a charitable trust and not covered under the definition of commercial training or coaching center as per Section 65(27) of the Finance Act, 1994 and thus invocation of an extended period of limitation by five years is not justified. 

Citation :
Service Tax Appeal No. 11477 of 2013 dated September 22, 2023

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