CENTRE FOR DEV. OF IMAGINE TECHNOL. Vs. CST

JUDGEMENT

(1.) HEARD learned counsel for the petitioner as well as Standing Counsel for the Department. Appellant before us, claiming to be a registered Society owned by the Government of Kerala, is the Centre For Development of Imaging Technology (C -DIT). The appellant is aggrieved by the impugned order dated 19 -8 -2013 refusing waiver of total service tax of Rs. 1,71,24,449/ - and further directing pre -deposit of Rs. 1,00,00,000/ - while considering the application for waiver of pre -deposit. Prima facie the matter regarding limitation to issue demand notice as contemplated under Section 73 of the Finance Act came up for consideration and at paragraph 6 of the order of the Tribunal, without discussing anything with reference to the date of demand notice and the provisions of Section 73, the Tribunal opined that the demand is in time, is the contention of the appellant before us. Section 73(1) of the Finance Act refers to limitation within which a demand could be made calling upon the assessee to pay service tax. Section 73(1) of the Finance Act reads as under:

(2.) READING of the above Section clearly indicates under what circumstances period of one year limitation could be considered and when period of five years has to be read instead of one year. Without referring to what exactly was the case of the appellant, so far as issue of limitation is concerned, the Tribunal proceeded to opine in one line that the demand is not time barred as contended by the appellant. As a matter of fact, the appellant also raised a contention that no prima facie case as shown in the show cause notice was forthcoming. If once the Tribunal decides the limitation issue, even if the demand is in order, then the department may not be entitled to collect the amount, of service tax and then further impose any penalty. Therefore, the issue of limitation as provided under Section 73 read with the proviso is very relevant and unfortunately, nothing is said about this aspect of the matter in the impugned order.