No Service Tax Collected: CESTAT quashes Invoking Extended Period of Limitation to Reconsider Demands on Work Orders

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the invocation of an extended period of limitation for reconsidering service tax demands on work orders. The appellant, M/s. N.K. Constructions, argued that no service tax was collected from customers, and there was no intent to evade payment. The tribunal found that the extended period should not apply as the appellant had not collected service tax, and there was no mens rea. This decision underscores the importance of intent and proper collection practices in determining the applicability of extended limitation periods for tax demands.