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2023 (11) TMI 172 - CESTAT CHANDIGARHNon-payment of service tax - Transport of Goods by Road Services - incurring expenditure on account of amounts, paid to Rice millers, which included payment towards transportation, from the premises of millers to the godowns of FCI - reverse charge mechanism - time limitation - HELD THAT:- The show-cause notice does not specify as to how the transportation charges have been arrived at for the purpose of showcause notice. It is seen from the Chart given under Para 2 of the show-cause notice that 33.33% of the payment, @ Rs.15 per quintal made to the millers, has been assumed to be charges towards transportation; no basis for the same has been given. Moreover, the difference between figures indicated in the Trial Balance was compared with the figures given in ST-3 Returns and service tax is sought to be levied on the differential figures. It is opined that such a vague and unsubstantiated show-cause notice cannot stand the scrutiny of law. Allegations in the show-cause notice should be based on concrete evidence of the services rendered or availed and the consideration paid or received for the same. In the absence of the same, the allegation will not survive. Moreover, the certificates given by the rice mills have been sought to be discarded during the course of hearing before us stating that the same do not bear date etc. However, no investigation appears to have been done to verify the authenticity or otherwise of such documents - Department has not established that the services have been rendered by a taxable service provider and that the appellants are under obligation to discharge duty on Reverse Charge Mechanism. Time limitation - HELD THAT:- The appellants, moreover, being a Government Corporation cannot be alleged to have suppressed material fact with intent to evade payment of tax. The Courts and Tribunal have been consistently holding that in respect of Government Corporations, Companies etc. intent to evade payment of service tax cannot be alleged. Moreover, it is found that during the relevant period, there was lot of confusion in the minds of the assessee regarding the taxability of goods transport operators; therefore, extended period cannot be invoked and to that extent, the appellants succeed on limitation. Appeal allowed.
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