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2019 (11) TMI 1033 - CESTAT ALLAHABADLiability of service tax - reverse charge mechanism - appellant procured services from their foreign sister concern - case of appellant is that they have not paid for the said services to the foreign service provider and only a provision to that effect stands made in their balance sheet. As they have not actually made any payment to the foreign sister concern, from whom services stand availed, no tax liability would fall upon them - interpretation of statute - with effect from 10/05/2008, an explanation was introduced in Rule 6 of Service Tax Rule 1994. HELD THAT:- The Tribunal has held that such rule would operate only prospectively and not retrospectively, we are of the view that the confirmation of demand by the authorities below on the sole ground that the appellant made has made provision for payment in the books of account, have rendered themselves liable to service tax, is unsustainable. Extended period of limitation - HELD THAT:- The demand relates to the period October, 2005 to March, 2008. Admittedly during the said period, the tax liability would arise against the assessee only of the payment have been made for the services so received by him - The show cause notice stands issued on 20/04/2011 by invoking longer period of limitation. In the absence of any mala fide on the part of the assessee for non-payment of duty during the relevant period, the invocation of longer period cannot be upheld. Appeal allowed - decided in favor of appellant.
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