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2018 (4) TMI 1183 - AT - Service TaxExtended period of limitation - Clearing and Forwarding Service - Department took the view that assessee should have paid the service tax for the earlier period 1.9.2003 to 8.7.2004 also and under category of Business Auxiliary Service - validity of SCN - time limitation - Held that: - the activities of the assessee would be only under C&F service. In a situation where the department has initiated proceedings demanding service tax liability against a person for a particular period, under a particular service, in the normal course, it would be expected that the department would issue periodical show cause notices till the matter is finally settled. There is no evidence that this has been done. The appellants were continuing to function under an agreement which was identical to the earlier one when department had demanded tax liability from them under C&F service. This being so, Department should have continued to issue protective periodical show cause notice on the very same C&F service. This was not done. Time limitation - Held that: - the department cannot wash away the fact that they were well aware of the continued activities of the assessee under the very same terms and conditions which they had been pursuing earlier. This being so, the initiation of the present proceedings after a gap of time, even when the assessee was working under identical agreement, can only be said to be proceedings which are hit by limitation. Appeal allowed in toto.
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