Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 319 - AT - Service TaxBusiness Auxiliary Services - business of car finance - during the period w.e.f. July 2003 to December 2004, did not make payment of Service Tax - during the course of investigation itself the appellant obtained a service tax registration on 25.10.2004 for Business Auxiliary Service and have since then started paying the service tax - demand of service tax - time limitation. Held that:- The nature of activity of the appellant is promotion on marketing of the services provided by the client. The same very much falls under sub Clause (ii) of 65(19) of the Act. The appellants actually were sourcing customers for the above mentioned banks. The actual agencies which provide the financial service by giving loans are those banks. They are actually the clients of the appellants. Thus, the services of the appellants were very much that in the nature of Business Auxiliary Services. Time limitation - Held that:- It is an admitted and apparent fact that since 01.07.2003, the appellant has not discharged the liability. They only got themselves registered under Business Auxiliary Services on 25.10.2004 but the simultaneous fact remains that during the said period (since 01.07.2003 to 10.09.2004), there was a prevalent confusion about the nature of the impugned activities - In the present case also, the demand is for the period w.e.f. July 2003 to December 2004. The Show Cause Notice was issued on 31.07.2007. Once there was an apparent acknowledged confusion about the impugned activity, nondischarge of the liability thereof cannot be alleged as an act of suppression of fact with an intent to evade tax. Resultantly, the Department was not entitled to invoke the extended period of limitation - demand is barred by limitation of time. Appeal allowed - decided in favor of appellant.
|