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2013 (5) TMI 670 - CESTAT BANGALOREImport of software - stay - duty of customs paid at the time of import - they paid vat at time of sale - extended period of limitation - held that:- Hon’ble Supreme Court’s decision in Idea Mobile Communication Ltd. case (2011 (8) TMI 3 - SUPREME COURT) is to the effect that the mere payment of VAT on sale value would not per se preclude the Revenue from levy of service tax on the taxable service involved in the transaction. Prima facie, therefore, the appellant is liable to pay service tax on the service element of the transaction involving the software in India. However, as regards the demand for the extended period, they seem to have a valid point, which is that the findings recorded by the Commissioner in the context of dropping Section 78 penalty are in favour of the appellant also in the context of their challenge to the demand of service tax for the extended period. If the appellant did not have guilty mind for the purpose of Section 78, they did not have it for the purpose of the proviso to Section 73(1) of the Act as well, which is our prima facie view. Pre deposit ordered towards service tax demand pertain to normal period - stay granted towards penalty and balance amount of service tax liability and thereon pertaining to extended period of limitation.
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