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2010 (3) TMI 784 - GUJARAT HIGH COURTDemand - Business Auxiliary Service - Extended period of limitation - suppression of facts - benefit of CENVAT Credit - penalty - HELD THAT:- It is an admitted position that the liability arose only with effect from 10-9-2004 when clause (v) came to be inserted in the definition of “business auxiliary services” so as to include ‘production of goods on behalf of the client’. Hence, it cannot be gainsaid that the services rendered prior to the said date were required to be excluded while computing the tax liability. Benefit of CENVAT Credit - duty paid on coating material, etc., used in epoxy coating and to avail credit on all input services - HELD THAT:- Both the Commissioner as well as the Tribunal, have concurrently found as a matter-of fact that the respondent was entitled to the me. In the circumstances, no infirmity is found in the order of the Tribunal in remanding the matter to the original adjudicating authority for re-quantification of the demand by extending the above benefits to the respondent. Penalty - Applicability of section 80 - HELD THAT:- Whether the activity carried on the by respondent would amount to production so as to be covered under the category of “Business Auxiliary Services” was a debatable issue - there was reasonable cause for the failure referred to in the provisions of Section 76, Section 77 or Section 78 of the Act. Appeal dismissed - Decided in favor of the assessee
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