2023 (3) TMI 236 - AT - Service Tax

Levy of Service tax and penalty - Business Auxiliary Services (BAS) - commission paid by the appellant to the foreign agents is taxable under Reverse Charge Mechanism - suppression of facts or not - rule 2(1)(d)(iv) of the Service Tax Rules, 1994 - HELD THAT:- On perusal of records, it is found that in paragraph 10 & 11, it has been categorically held by the Commissioner that there is no suppression of facts. The proposal to impose penalty has also been dropped holding that there was no suppression of facts and that non-payment of service tax was due to bonafide belief that the amount paid to the commission agents is not subject to levy of service tax.

Although the Commissioner had rendered a finding that there is no suppression of facts with intend to evade payment of tax, the demand for the extended period has been confirmed. Such confirmation of demand is not legal and proper and requires to be set aside. The appellant succeeds on the ground of limitation - thus it is not necessary to delve into the merits of the case as the issue on limitation is answered in favour of assessee.

The impugned order is set aside on the ground of limitation - appeal allowed.