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2014 (4) TMI 59 - AT - Service TaxDemand of service tax - providing security services to other group companies - No profit motive - Suppression of facts - Invocation of extended period of limitation - Interest u/s 75A - Penalty u/s 76, 77, 78 - Held that:- the nature of service rendered by the appellant was only security services and nothing else. - If the appellant had indeed rendered a multiplicity of services, the charges would have varied every month which also is a pointer towards the fact that the appellant rendered only one type of service. As regards the claim of the appellant that they were operating on no profit no loss basis and therefore, cannot be considered as a commercial concern, this argument is without any merit. - the appellant cannot claim that they were not operating as a commercial concern. - there is no evidence available on record to show that the income received by the appellant was completely disbursed by way of payment of salaries. - it is difficult to conclude that the appellant was operating on no profit and no loss basis. Bonafide belief is not blind belief but has to be based on reasonable measures taken to entertain such belief. There is nothing in the records to show that the appellant consulted either the department or obtained any legal opinion as their liability towards service tax. Inasmuch as the appellant did not obtain any registration nor did they follow any of the statutory procedures, the appellant had clearly suppressed the facts from the department with an intent to evade service tax. In these circumstances, the confirmation of duty demand invoking the extended period of time along with interest thereon cannot be faulted. Consequently, the appellant is also liable to penalty under the provisions of the Finance Act, 1994 - Decided against the assessee.
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