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2021 (4) TMI 811 - CESTAT AHMEDABADLevy of service tax - reimbursable expenses - appellant charge 10% of the actual wages to be paid to the workers so hired/supplied as their service charges and recover the same from service recipient - time limitation - HELD THAT:- The appeal can be disposed of on point of limitation without going into the merit of the case. The appellant is registered with the service tax authority. They filed periodically ST-3 return in respect of service provided by them declaring the value as per their bona fide belief which is equal to commission which they received from the service recipient. With this disclosure the revenue is very much in the knowledge about the nature of service provided by the appellant therefore the revenue was not prevented to verify the correctness of the nature of service as well as the value declared by the appellant in their ST-3 return. In this undisputed fact it cannot be said that the appellant have suppressed the vital fact with intention to evade service tax. It is also found that the issue is purely of interpretation of valuation provision under Finance Act, 1994. In view of the judgment in COMMISSIONER OF C. EX., CUS. & ST., DAMAN VERSUS NR. AGARWAL INDUSTRIES [2014 (5) TMI 603 - GUJARAT HIGH COURT] it is settled that if on any issue there is a legal dispute which involved interpretation of law the mala-fide intention or suppression of fact with intent to evade payment of service tax cannot be attributed to the assessee - On this ground also the extended period of demand was not invokable. As per the facts in the present case the period of dispute i.e. 2005-06 to 2009-10 and show cause notice was issued on 19.05.2011. It is also observed that the appellant has filed their ST-3 return covering the period October 2009 to March 2009 on 27.04.2010. As per the facts the entire demand is beyond the normal period and falling under the extended period of limitation - entire demand is time barred - appeal allowed - decided in favor of appellant.
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