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2017 (9) TMI 234 - AT - Service TaxCommission - includibility - pure agent - the department was of the view that the appellant does not satisfy the conditions prescribed under Rule 5(2) of the Service Tax Rules to justify such exclusion as pure agent - Held that: - Rule 5(2) of the Service Tax (Determination of Value) Rules, specifies the conditions which are required to be satisfied for excluding certain expenditures or costs incurred by the service provider as a Pure agent of recipient of service - there is no justification for excluding 80% of commission from payment of service tax. Time limitation - Held that: - from the fact that the appellant wrote several letters explaining their stand and asking for clarification reflects upon the bonafide of the appellant, that they entertained a belief that 80% of the commission can be excluded - Department is not justified in invoking the extended period of limitation under section 73 for demand of Service Tax in the present case - The Show cause notice which has been issued on 15.4.2011 for demand of service tax for the period 2006-07 to 2008-09 is time barred and hence the demand is required to be set aside. Appeal allowed - decided in favor of appellant.
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