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2023 (10) TMI 884 - AT - Service TaxViolation of principles of natural justice - impugned order passed without properly appreciating the facts and law - non-appreciation of complete facts - SSI Exemption - Business Auxiliary Service - Invocation of Extended period of limitation - Penalty - HELD THAT:- The demand of service tax for the period from 1st April 2003 to March 2005 is prima facie wrong because the appellant has started rendering services to M/s IBP Co. Ltd. from 01.09.2005 as is clear from the agreement dated 01.09.2005 which has been accepted in the order-in-original. The appellant is entitled to SSI exemption for the period 2005-2006 because their turnover was less than 4.00 lacs in that financial year which entitles them for SSI exemption in terms of Notification No. 06/2005-ST dated 01.03.2005. In the case of Commissioner of Central Excise, Chandigarh vs. Loan Zone [2015 (12) TMI 269 - CESTAT NEW DELHI] wherein identical facts were involved and it was held that the service is not provided to independent persons but to service recipient who is itself brand name owner. Invocation of Extended period of limitation - Penalty - HELD THAT:- In the present case, invoking the extended period of limitation is not justified simply on the ground that there was no payment of tax and no return was filed as held in the case of Punjab Technical University [2016 (1) TMI 162 - CESTAT NEW DELHI] - imposition of penalty under Section 76 and 77 are bad in law as per the judgement of the Hon’ble Punjab and Haryana. The entire demand is barred by limitation - the appellant was entitled to the SSI exemption in view of the facts of this case - Appeal allowed.
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