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2016 (1) TMI 846 - AT - Service TaxMarketing and advertising activities undertaken for ICICI Bank - Business Auxiliary Service or Not - Commissioner (Appeals) held that services rendered did not fall under BAS - Extended period of limitation - Levy of penalty - Held that:- neither at the time of adjudication at the primary level nor at the first appellate level, the issue of time bar was raised, though it being a mixed question of fact and law, it can be raised at this stage. However, we find that the nature of service rendered was such that it was clearly covered under the definition of BAS. The respondent has not been able to demonstrate as to how and on what basis it had a bonafide belief that the impugned service did not fall under BAS. Bonafide belief is not a hallucinatory belief; it is a belief of a reasonable person working in appropriate environment. It can hardly be the respondent's case that it was guided by CESTAT judgment. Revenue's appeal allowed except that penalty under section 76 is set aside and penalty under section 78 is reduced to 25% of ₹ 5,82,025/- provided the respondent pays the entire amount of service tax alongwith interest and reduced (25% of ₹ 582025/-) penalty within 30 days of receipt of this order. It is clarified that amount already paid towards the impugned demand /interest penalty will be counted for this purpose. - Decided in favor of Revenue.
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