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2019 (5) TMI 1230 - AT - Service TaxExtended period of Limitation - ancillary activity for providing Digital Signature Certificates (DSC) - Business Support Service or not - activity is related to sovereign function or not - Whether the demand has to be held as time barred and the penalty has to be set aside? - difference of opinion - majority decision - HELD THAT:- The learned Member (Judicial) have recorded that the appellants had reflected all the transactions in the balance-sheet as also raised invoices for the same and therefore, it cannot be held that there was any suppression on the part of the appellants. Appellant had also referred the correspondence between Commissioner and appellants as also between appellant and Office of Controller of Certify Authority, Ministry of Communication & Technology. It was, further, recorded that all the related documents like audited balance-sheet was submitted by the appellant to other Tax Authorities like Income Tax. I note that the learned Member (Judicial) have therefore, held that there was no suppression on the part of the appellant. In the present case since suppression could not be established therefore, I agree with the views expressed by learned Member (Judicial) that the demand was barred by limitation - since the demand does not sustain for extended period, therefore, the invocation of penal provisions is not justified. The majority decision is that the demand raised by way of invoking the extended period of limitation is required to be held as time barred by limitation. A small part of demand falling under normal period may be requantified and recovered by Assistant Commissioner alongwith applicable interest - Penalty is set aside. Appeal allowed in appellant.
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