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2014 (8) TMI 337 - AT - Service TaxValuation - Photography services - inclusion of cost of material - Invocation of extended period of limitation - Penalty u/s 78 - Held that:- respondent were liable to pay service tax on the gross amount charged and the exclusion from the assessable value of the value of paper and other consumables and chemicals used for providing photography service was not permissible - period of demand is from September 2003 to March 2005 and the show cause notice invoking extended period under proviso to Section 73 (1) of the Finance Act, 1994 has been issued only on 23/03/07 and the same would survive only if the conditions for imposing proviso to Section 73 (1) exists. When on a particular issue during a particular period there was divergence of views on account of conflicting judgments of the Tribunal or High Courts and the assessee had paid tax in accordance with one group of judgments in his favour, he would have to be treated on having acted in bonafide belief and longer limitation period for recovery of short paid tax cannot be invoked - longer limitation period under proviso to Section 73 (1) would not be invokable and, as such, the demand is time barred - penalty under Section 78 also would not be imposable - Decided against Revenue.
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