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2015 (8) TMI 596 - AT - Service TaxServices of transportation of passengers - Advance receive for journey before levy of service tax i.e. 1/5/2006 - Suppression of facts - Bonafide belief - Bar of limitation - Assessee contends that that they were under the bonafide impression that the service tax liability may not arise on an amount received as advance for the journeys to be conducted after 01/05/2006 - Held that:- It can be noticed from the letter received by the appellant from the office of the Assistant Commissioner, service tax specific details were called for and such details were given. In our view the appellant had volunteered the information as soon it was sought by the departmental authorities. In our view the details which were not sought could not have been supplied by the appellant Receipts of the payments prior to the date of journey recorded in accounts, as is the industry practice. If the authorities were claiming that the appellant has suppressed the details, they could have asked for the correct details from the appellants, which they did not do so. Further, we find that the post communication dated 06/08/2006, which is referred by the adjudicating authority, it was also in the knowledge of the department that a clarification has been issued, despite such clarification, there seems to be no follow up by the department like seeking for the details or demand of tax from the appellants, in the absence of any positive action of in suppressing the details from the department, we find that tax liability which is being worked out by invoking the extended period is not correct - demands raised on the appellant are blatantly hit by limitation and we set aside the impugned order on the question of limitation. Since we have set aside the demands, the question of interest and penalties does not arise and they are also set aside. - Decided in favour of assessee.
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