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2016 (8) TMI 91 - AT - Service TaxExtended period of limitation - Cenvat Credit availed on input services and capital goods between March 2008 and March 2009 i.e. prior to the commissioning of the pipeline - Appellant is rendering Transportation of Gas through pipeline services - Held that:- From the record it clearly comes out that the privity of contract in the instant case was between the Appellant and the service provider and that these service providers were under no obligation whatsoever to the pipeline laying contractors nor were the pipeline laying contractors under any obligation to pay for the said services or to compensate or otherwise for the deficiency in the services of the said service providers. This being the case the finding that services availed of from the other service providers as also the capital goods were used by the pipeline laying contractors is clearly untenable. The demand raised against the Appellant is hopelessly barred by limitation inasmuch as the Appellant had made a clean breast of all the relevant facts under cover of its letter dated 28.7.2006 before availing credit. In this letter the Appellant had clearly informed the jurisdictional Assistant Commissioner about the business Model that it was to follow and of its intention to avail credit on the input, input services and capital goods that it was to use for rendering its output service. The Appellant had also informed the Revenue of the fact that the pipeline which is being laid would be embedded to the earth. Given the aforesaid facts we are of the view that there has absolutely no suppression whatsoever on the part of the Appellant so as to warrant invocation of the extended period of limitation. - Demand set aside - Decided in favor of assessee.
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