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2023 (6) TMI 466 - CESTAT HYDERABADLevy of Service tax - Classification of services - Business Exhibition Service or not - providing services to Govt of Andhra Pradesh under a program called Integrated Mobile Publicity in Assembly Constituencies (IMPACT) - time limitation - HELD THAT:- After going through the facts of the case, it emerges that in July 2009 CAG Audit has taken a view that service would fall under the category of ‘Public Relation Services’. Keeping faith on this interpretation of the CAG, the Service Tax Department has raised the demand for more than Rs 4 crores wide their letter dated 15.07.2009. They have also raised the issue vide letter dated 01.07.2009 based on the CAG Audit and called for all the documents to be submitted. Appellants have replied on 02.07.2009 making their stand clear. The Show- Cause Notice fails to clarify as to what took them more than 1.5 years to issue the Show-Cause notice on 04.03.2011. In the Show-Cause Notice there is absolutely no mention of any earlier demand raised by the Department on 15.07.2009. The Show-Cause notice also does not specify as to what made the Department change its mind from classifying the service as Advertisement Services when CAG Audit has pointed out that the service would fall under the category of ‘Public Relations Management Services’. On an identical issue in the case of another party CST, DELHI VERSUS M/S WALIA & CO. [2017 (3) TMI 936 - CESTAT NEW DELHI] who was also awarded the contract by Govt of A.P. in respect of the same program, the Department has proceeded against them at Delhi on the ground that they were rendering the service of ‘Public Relations Management’ service which in fact has been confirmed by the Delhi Tribunal. Time Limitation - HELD THAT:- From the factual matrix cited, it is clear that the matter of classification of the service is purely a matter of interpretation. In such a case demand for extended period does not sustain. The confirmed demand for the extended period is liable to be set aside. The appeal is allowed to this extent.
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