2014 (4) TMI 505 - HC - Service Tax

Confirmation of demand by the tribunal on merit after concluding that extended period of limitation cannot be invoked - valuation - tribunal concluded that that since storage of goods in the cold storage was an essential part of the clearing and forwarding operations of the assessee, cold storage charges are required to be added in the taxable value of services rendered. - Held that:- the Supreme Court has held that the burden of proof of proving mala fide conduct under the proviso to Section 28 of the Customs Act, 1962, which is an equivalent provision, is on the Revenue and specific averments must be made in the show cause notice for initiation of an action under the proviso. In the present case, the Tribunal was justified in coming to the conclusion that the facts had been duly disclosed by the assessee to the Department and were within the knowledge of the Department in 2002. - Decided against Revenue.

Tribunal having came to the conclusion that the extended period of limitation could not have been validly applied, acted outside its jurisdiction in entering upon the merits of the dispute on whether the demand for duty should be confirmed. Once it is held that the demand is time barred, there would be no occasion for the Tribunal to enquire into the merits of the issues raised by the Revenue. - Decided in favor of assessee.