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2018 (8) TMI 704 - HC - Service TaxExtended period of limitation - Section 73 of the Finance Act, 1994 - the fact of rendering of taxable service by the Respondent came to the notice of the Appellant while conducting Audit of the books and accounts of a third party - Held that:- The issue as to what would amount to wilful mis-statement or supression of fact has been dealt with by the Supreme Court in Uniworth Textiles Ltd. v CCE, Raipur [2013 (1) TMI 616 - SUPREME COURT] wherein it has been held that mere non payment of duties is not equivalent to collusion or wilful mis-statement or supression of facts, otherwise there would be no situation for which ordinary limitation period would apply. Inadvertent non-payment is to be dealt within the normal limitation period and the burden is on Revenue to prove allegation of wilful mis-statement. In the case at hand also, the CSIDC is an entity under the control of the Government of Chhattisgarh. It does not belong to an individual who would evade tax to corner profit in its business activity - The explanation putforth by the CSIDC that it was under bona fide impression that being an entity under the control of Government it was not liable to pay service tax appears to be reasonable explanation, therefore, mere non registration under Section 65 or non payment of service tax on the maintenance charges collected from industries would not amount to wilful supression or mis-statement of fact, hence, the CESTAT has rightly held that the present is a case where the Revenue is not entitled to invoke the extended period of limitation - decided against Revenue. Maintainability of the cross-objection filed by the respondent - appeal to High Court against an order passed in appeal by the Appellate Tribunal - Section 35G(9) of the Act, 1944 - Held that:- In appeal under Section 35G of the Act, 1944 the provisions of the CPC relating to appeals to the High Court shall apply, therefore, by necessary consequence the provisions contained in Order 41 Rule 22 of the CPC would also apply because the said provision otherwise applies to appeals to the High Court under the CPC. - cross-objection filed by the respondent is maintainable. Appeal dismissed - decided against appellant.
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