No Special Treatment for Government Bodies u/s 73 of Finance Act: CESTAT Upholds Extended Limitation for Service Tax Evasion

Upholding the principle of equal application of the law, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that government bodies are not entitled to any special treatment when it comes to tax evasion. The tribunal upheld the invocation of the extended period of limitation under Section 73 of the Finance Act, 1994, against a government entity for the evasion of service tax. The government body had argued that being a public entity, there could be no willful intent to evade tax. However, the CESTAT dismissed this argument, stating that the law does not differentiate between government and private entities. It held that if there is evidence of suppression of facts or contravention of law with an intent to evade tax, the extended limitation period can be invoked against any assessee, including government departments.