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2011 (1) TMI 90 - AT - Service TaxDemand - The agreement had 3 parts i.e. Licence Agreement, Engineering Agreement, Guarantee Agreement - it is the case where designs, technical know-how etc which were admittedly prepared by the appellant in Boston, stand transferred by them to IOCL – The Commissioner, in Para2 3.2 of his order, has specifically observed that the services rendered by the appellant have been consumed in India. If that be so, it can be safely concluded that the services were not rendered in India. The consumption of service in India is not taxable event. Situs of the tax would be where the taxable event occurs and not where the effect or the consequence thereof is felt. The taxable event has not occurred inIndia, inasmuch as the activity of development of technology, technical information & know-how, transfer of design, drawing etc has taken place in USA. Extended period of limitation - Any bonafide lapse not to make enquiries about its obligation to pay duty/tax, cannot be made reason for invocation of extended period unless there is evidence to show that such lapse was on account of malafide intention, and with guilty mind of avoiding payment of tax. - Demand is barred by limitation – Appeal is allowed
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