Order Date – 28 June 2023

Parties: Mr. Bikash Chakraborty Vs Commissioner of CGST & CX, Guwahati Commissionerate

Facts –

• The Appellant, Mr. Bikash Chakraborty, engaged in government contracts it was not liable to be registered with the service tax department and hence there was NO ST 3 filed.
• The department made demand against the appellant for the said FY 2015-16 invoking extended period of limitation.

Issue –

• Whether the appellant is required to pay service tax?

Order –

• The Tribunal observed that the appellant’s business was scrutinised by the service tax department for FY 2015-16 for which a NO DUE certificate was already issued to the appellant by the same service tax department based on ITR filings on 2016.
• Thus, issuance of present SCN by the department in 2021 based on the same ITR findings cannot be sustained as the department was already in knowledge of the activities of the Appellant and had also given a no due certificate to the appellant.
• Though the appellant had not appeared in the adjudication proceedings, yet the certificate issued by the department in 2016 clearly establishes that the records were already scrutinised by the revenue in 2016 itself and hence the Tribunal was unable to persuade as to how the same department can invoke extended period of limitation to confirm the demand for the same year.       
• Thus the appeal is allowed.