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2018 (9) TMI 662 - AT - Service TaxLiability of Service Tax - services provided to its associate company i.e. M/s. CMST-BSNL - services provided to M/s. CMST-BSNL, Jaipur which is having a separate service tax registration? Held that:- For the provision of service there has to be a service provider as well as a service recipient - No doubt appellant is a service provider and M/s. CMST, BSNL is service recipient and that both have different service tax registration, but the fact remains is that they both have the same PAN number as such both have same incorporation i.e. both are the one and the same entity. This observation make it clear that mandatory requirement for service tax that is of existence of two different entities is absolutely missing in the case in hand. Hence the transaction between the two cannot be termed as provision of service and hence no service tax is payable - Once this is the situation Section 67 of the Act has no applicability nor will be relevant the explanation in sub section 4 thereof. The adjudicating authority below has wrongly relied upon the concept of book adjustment which is relevant only when the event is taxable. Extended period of limitation - Held that:- Once no taxability is involved question of evasion of tax does not arise. The question for assessee to suppress or mis-represent the fact with the intent to evade tax also retains no relevant - the department was not entitled to invoke the extended period of limitation. Appeal allowed - decided in favor of appellant.
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