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2017 (8) TMI 1718 - CESTAT NEW DELHIExtended period of limitation - Reverse charge mechanism under Section 66A of the Finance Act - revenue neutral situation - penalty - HELD THAT:- The admitted fact is that the appellant was required to pay service tax on the services received from abroad under Section 66A of the Finance Act, 1994. The appellant did not pay service tax thereon. The show cause notice has been issued by invoking extended period of limitation. Therefore, it is required to be seen whether there was malafide intent of the appellant not to pay service tax. Admittedly, whatever service tax paid by the appellant same is refundable in terms of Notification No. 41/2007, therefore, the appellant is entitled for refund claim. In that circumstances, the ingredient of malafide intention on the part of the appellant is missing. Thus, it is a situation of neutrality. Therefore, in that circumstances, service tax cannot be demanded from the appellant. Accordingly, the impugned order is set aside - thus, no penalty is imposable on the appellant - appeal allowed.
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