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2022 (11) TMI 265 - AT - Service TaxValuation of services - reimbursement of electricity expenses - inclusion of facility sharing charges in the assessable value - taxability of the service charges under the head “Business Support Service” received from Webdunia - mutuality of services - suppression of facts - penalty under Section 77 and 78 of FA - extended period of limitation - HELD THAT:- The appellant is not liable to service tax on the amount received as facility charges amounting to Rs.1,73,50,000/- as the same is wholly attributable to electricity expenses, which has been shared proportionately by the appellant and its sister concerns. Taxability of the service charges under the head “Business Support Service” received from Webdunia - HELD THAT:- Both Webdunia, PPPL and Naidunia (appellant) are under the same management. Thus, there is element of mutuality in sharing of facility and the available news library. Accordingly, the said receipt is not chargeable to tax (of Rs.30,000/- p.m.) under the head “Business Support Service”. Extended period of limitation - penalties - HELD THAT:- The appellant have maintained proper records of their transactions and receipts. Thus, the issue and demand in dispute is wholly interpretational in nature or by way of change of opinion. Admittedly, the appellant is registered with the Department and have regularly filed the returns and deposited the admitted tax. Accordingly, the show cause notice is bad for invoking the extended period of limitation - All penalties imposed are set aside. Appeal allowed - decided in favor of appellant.
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