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2023 (8) TMI 350 - AT - Service TaxExtended period of limitation - service tax on chartered accountant service provided by the appellant as a sub-contractor to the main contractor M/S. Deloitte Haskins and Sells - HELD THAT:- There is no contest of taxability on merit however, the appellant have strongly submitted that the demand is hit by limitation. In this regard, it is found that the appellant were issued other show cause notice and this tribunal has dropped the demand on limitation in CC CHOKSHI & CO. VERSUS C.S.T. SERVICE TAX-AHMEDABAD [2019 (1) TMI 2028 - CESTAT AHMEDABAD]. From the above decision in the appellant’s own case it is clear that the issue has been raised earlier also by the Revenue therefore, the activity of the appellant was very much known to the department, hence, the department was not prevented to issue the show cause notice for the subsequent period within a normal time period. It is also noted that during the relevant period i.e. 2005 -2006, the board circular dated 31.10.1996 was in force and according to which the appellant was not required to pay the service tax being a sub-contractor. For this reason also the appellant had a bona fide belief that they are not liable to pay any service tax. The issue of limitation has been decided by the Hon’ble Supreme Court in the case of NIZAM SUGAR FACTORY VERSUS COLLECTOR OF CENTRAL EXCISE, AP [2006 (4) TMI 127 - SUPREME COURT] wherein it was held that once on a particular issue the show cause notice has been issued, on the same issue for the subsequent period no extended period can be invoked as demand for the extended period do not sustain being time bar. The demand is clearly hit by limitation. Hence, the impugned order is set aside - Appeal allowed.
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