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2018 (9) TMI 391 - AT - Service TaxPlace of supply of services - Services of promotion of their products availed by an agent outside India - Reverse charge mechanism - Section 66A of FA - Suppression of facts or not? - Extended period of limitation - Held that:- In the instant case, the period of dispute is 18.04.2006 to 30.09.2007. In the identical circumstances, in the case of Tech Mahindra Limited vs. CCE, Pune [2015 (2) TMI 392 - CESTAT MUMBAI] it has held that failure to disclose the services in the ST-3 return is insufficient to invoke the extended period of limitation - So long as the recipient of service is located in India, the said service would be taxable as the service received in India. In the instant case, while the service provider located abroad, he has been procuring orders for the appellant located in India. The service falls under clause (iii) of Rule 3 of Taxation of Services (Provided from outside Indian and received in India) Rules, 2006 - Thus, the demand of duty is sustainable both, on merits as well as limitation. Penalties u/s 76 and 78 of FA - Held that:- Simultaneous penalties under Section 76 and 78 cannot be imposed. Consequently, the penalty under Section 76 is set-aside and the penalty under Section 78 is upheld - the benefit to avail 25% is extended to the appellant subject to payment of entire tax along with interest and 25% of penalty within one month of the date of receipt of the order. Decided against appellant-assessee.
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