Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 852 - AT - Service TaxBusiness Auxiliary Services - providing multi level marketing services - Period of limitation period - period involved is 2003 to September 2008 whereas the show cause notice stand issued on 24.10.2008 - Held that: - We find that the issue of multi level marketing falling under the category of ‘Business Auxiliary Services’ stands finally concluded by the Tribunal in the case of Charanjeet Singh Khanuja Vs. CST Indore [2015 (6) TMI 585 - CESTAT NEW DELHI]. However, in the same very decision, the Tribunal has observed that since there was bonafide belief in the industry itself and in as much as two views stands held by the department itself regarding taxability of activity, longer period of limitation would not be available to the Revenue. As such we find that the longer period of limitation was not available to the Revenue. Ld. Advocate however, fairly agrees that part of the demand would fall within the limitation period - In view of the above, we set aside the impugned order and hold that the demand beyond the limitation period would not be sustainable. Accordingly matter is remanded to the lower authorities for re-quantification of the demand falling within the limitation period. As regards penalty, we agree with Ld. Advocate that penal sections are invokable when there is fraud with an intention to avoid payment of duty. As we have also observed that there was bonafide belief in the industry itself, imposition of penalty upon the appellant would not be justified. Accordingly, we set aside the penalty. Appeal disposed off - matter on remand.
|