Commissioner Of Central Excise Aurangabad (Now Commissioner Of Central GST And Service Tax) vs. M/S Millennium Beer Industries LTD., Bangalore Now (M/S United Breweries LTD. Aurangabad)

Held

The High Court dismissed the Revenue's appeal, upholding the CESTAT's decision. It found that the Revenue failed to prove fraud, collusion, or suppression of facts with intent to evade duty, which is necessary to invoke the extended period of limitation. Therefore, the demand notice issued in December 2012 for a period ending April 2010 (due to amalgamation) was barred by limitation.

Facts

The Revenue appealed against a CESTAT order which allowed the assessee's appeal. The assessee, M/s Millennium Beer Industries Ltd., manufactured and sold alcoholic beverages for M/s United Breweries Ltd. from 2009-2011. A show-cause notice was issued in December 2012 demanding service tax, interest, and penalties, which was confirmed by the adjudicating authority but set aside by CESTAT on grounds of limitation.

Key Issues

The key legal issues were whether the demand was barred by limitation, specifically if the extended period of limitation could be invoked, and whether the appointed date of amalgamation or the effective date of incorporation should be considered for service tax liability.