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2019 (11) TMI 435 - AT - Service TaxClassification of services - Business Auxiliary Service or not - appellant, which is a Government Company, is primarily engaged in procurement/purchase of food grains and essential commodities etc and distribution of the same to the financially weaker section of the society - extended period of limitation - HELD THAT:- The appellant‟s services are in relation to provisions of services on behalf of M/s Coal India Ltd. to distribute the coal for which duty is being assigned to the appellant on a consideration. Having provided such services on behalf of M/s Coal India Ltd. against consideration, the appellant have admittedly provided services falling under the category of “Business Auxiliary Service‟. Extended period of limitation - demand stands raised by way of issuance of show cause notice dated 24 August, 2009 for the period 2005-06 to 2007-08 was till 31 March, 2008 by invoking the longer period of limitation - HELD THAT:- Apart from the fact that the appellant is a public sector undertaking of Government of Uttar Pradesh and as such cannot be attributed with any mala fide, we also note that the Commissioner in his impugned order has observed and thus the noticee may not have suppressed the facts, but because of their omission by not applying for registration non-filing of proper return, non-payment of service tax, non supply of proper information despite repeated correspondence by investigating agency and non-appearance in compliance of summons have lead to the suppression of facts by them - In the present case the Adjudicating Authority having himself held that there was no suppression on the part of the appellant, the longer period should not have been invoked. Penalty - HELD THAT:- The Commissioner has himself agreed that there was no suppression or mala fide. Inasmuch as the demand in the present appeal stands raised beyond the period of one year, the entire demand is barred by limitation and is required to be set aside. For the same reason, penalty imposed on the appellant is required to be set aside. Appeal allowed - decided in favor of appellant.
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