Mere suppression of facts would not result in invocation of the

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has reiterated a crucial legal principle, ruling that the extended period of limitation cannot be invoked merely based on the suppression of facts by an assessee. The tribunal clarified that for the extended period to apply, the revenue department must prove that the suppression was willful and intended to evade tax. In the specific case, the tribunal set aside a demand for service tax, stating that the department had failed to establish any mala fide intent on the part of the assessee. This judgment is significant as it prevents the arbitrary application of the extended limitation period by tax authorities. It places the onus on the department to provide concrete evidence of deliberate tax evasion, thereby protecting taxpayers from belated and unsubstantiated demands. This decision upholds the principles of fairness and justice in tax administration.