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2020 (2) TMI 631 - AT - Service TaxSupply of tangible goods - demand of service tax for the period 01.10.2008 to 30.06.2012 and thereafter under negative list up to 31.03.2013 - extended period of limitation - penalty - HELD THAT:- As the right of possession of the vehicle has been in control of the appellant, therefore, they are liable to pay service tax under the said category but the appellant was under bonafide belief that they were engaged in the activity of transportation of goods on behalf of the service recipient and the said service is not taxable in the hands of the appellant. The said understanding of the appellant has been evidenced by various agreements between the appellant and the service recipient which clearly shows that the main activity of the appellant is transportation of goods on behalf of the service recipient. The appellant was under bonafide belief that they are not liable to pay service tax on the activity undertaken by them. Therefore, the extended period of limitation is not invokable - As it is seen that the whole of the demand has been confirmed against the appellant by invoking extended period of limitation, therefore, the whole of the demand is barred by limitation and consequently, no penalty is imposable on the appellant. Appeal allowed - decided in favor of appellant.
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