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2012 (11) TMI 168 - AT - Service TaxDemand under the head "maintenance or repair service" for the period up to 30.4.2006 - Extended period of limitation - appellant engaged in the business of reconditioning engines and parts thereof and repairs of other parts of vehicles of all brands - appellant contended that they were in bona fide believed that they had no tax liability in respect of the activities in question and hence did not include the relevant particulars in their returns – Held that:- Activity of rebuilding, reconditioning, restoration and servicing of IC engines and other parts (of motor vehicles), received from authorised service stations and workshops were not disclosed by the appellant in their ST-3 returns - there was suppression of relevant information by the appellant with intent to evade payment of service tax. Some of the relevant facts were first disclosed to the department only on 5.9.2007, the date on which the appellant submitted a letter to the Superintendent (Audit) - this disclosure of information was not voluntarily made as it was made in the face of audit objections. In the result, the invocation of extended period of limitation requires to be upheld Services provided by the appellant to authorised service stations and workshops during the period of dispute are classifiable as "maintenance or repair service" up to 30.4.2006 and "management, maintenance or repair service" from 1.5.2006 and, consequently, the appellant is liable to pay service tax on these services. But they are not liable to pay service tax on maintenance or repair of motor vehicles directly brought to them by the vehicle owners as this activity is covered by the exclusion clause incorporated in the definitions of "maintenance or repair" and "management, maintenance or repair" Demand of service tax on the services rendered by the appellant to authorised service stations and workshops in respect of IC engines and other parts of motor vehicles is upheld Demand of service tax on the services rendered by the appellant directly to the vehicle owners in respect of whole motor vehicles is set aside Appellant shall pay interest under Section 75 and under Section 78 of the Finance Act, 1994 on the amount of service tax and education cess to be requantified
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