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2019 (2) TMI 1795 - AT - Service TaxLevy of service tax - Club or Association Services - extended period of limitation - HELD THAT:- The assessee relied upon the Hon’ble Jharkhand High Court’s decision in the case of Ranchi Club Ltd. Versus Commissioner of Customs, Central Excise & Service Tax, Ranchi Zone & Others [2012 (6) TMI 636 - JHARKHAND HIGH COURT] and contended that the Club & Association Service has been held to be ultra-vires by the Hon’ble High Court - The Appellate Authority distinguished the said decision of the Hon’ble High Court of Jharkhand by observing that the Club before the High Court was Member’s Club whereas the appellant in the present case is running a propriety club and as such the declaration of law by the Jharkhand High Court would not be applicable to them. The appellant also assailed the demand on the point of limitation by submitting that there was no suppression on their part and the issue involved was a bona-fide legal issue of interpretation. The Commissioner (Appeals) did not agree with the said plea of the assessee and upheld the order - the appeal cannot be disposed on the point of limitation itself, inasmuch as, the demand stands raised by invoking the extended limitation period. The disputed issue was an interpretational issue and in the light of the Hon’ble Jharkhand High Court’s order the assessee could have entertained a bona-fide belief that the activity is not taxable, the entire figures were collected by the Revenue from the records maintained by the assessee. The demand is hopelessly barred by limitation - Appeal allowed - decided in favor of appellant.
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