Section 11A Central Excise Act

Consistency Is Sacrosanct in Revenue Matters: Bombay High Court Bars a Rs. 21.92 Crore Service Tax Demand the Department Had Already Dropped Against an Identically Placed Assessee

A show cause notice issued roughly two years after the transactions it targeted, confirming Rs. 21.92 crore in service tax, interest and penalty on a brewery's contract-bottling arrangement with its brand owner. The Bombay High Court's Aurangabad Bench dismissed the Revenue's appeal against the Tribunal's finding that the demand was time-barred, holding that the extended period of limitation cannot be invoked without a specific averment of fraud or suppression in the show cause notice, and that the Department could not press an appeal against one assessee after having accepted an identical Tribunal order in favour of another.