CERA Objection and Extended period of Limitation

The Chennai Bench of CESTAT set aside a service tax demand on the ground of limitation, holding that the extended period could not be invoked where the demand originated from a CERA audit objection that was itself disputed by the Department. 

The Tribunal held that a matter involving interpretational differences between the audit authorities and the Department could not simultaneously form the basis for alleging suppression of facts by the assessee.

Since the show cause notice was time-barred, the Tribunal declined to examine the merits of taxability and allowed the appeal.