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2024 (1) TMI 525 - AT - Service TaxLevy of service tax - Business Auxiliary Service - Technical Inspection and Certification Service - GTA Service - Extended period of limitation - revenue neutrality. Business Auxiliary Service - Technical Inspection and Certification Service - HELD THAT:- It is brought out from evidence that garments are sold by the appellant to M/s.Bonprix, Germany. M/s.JPS Trading, Dubai has played a role of middleman in making arrangements. The quality test is done by M/s.Fashion Force in India. According to the department, it is an agent of M/s.JPS Trading, Dubai. However, there is no payment made by the appellant to M/s.Fashion Force. We therefore do not understand how there would be a service rendered by M/s.Bonprix, Germany to the appellant so as to be taxable under reverse charge mechanism. Even if there was any service rendered in regard to quality checking, the demand ought to have been raised against M/s.Fashion Force, who is the service provider for quality checking. If the department is of the view that Fashion Force, Tiruppur is the branch office of JPS Trading, Dubai then it would be M/s.Fashion Force, Tiruppur who is liable to pay service tax. It cannot be said that the deductions made in the invoices raised in the name of M/s.Bonprix, Germany is a payment made to Fashion Force, Tiruppur - the demand raised under ‘BAS’, ‘Technical Inspection and Certification Service’ is without any factual or legal basis and requires to be set aside - The issue on merits is answered in favour of the appellant and against the Revenue. GTA Service - HELD THAT:- The authorities below have extended the benefit of abatement after the period 1.3.2008. The show cause notice has been issued invoking the extended period. Even if the appellant paid tax on GTA services, the appellant would be eligible for availing cenvat credit of the tax paid. The entire situation is revenue-neutral. In such situation, the extended period cannot be invoked as decided in the case of NIRLON LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, MUMBAI [2015 (5) TMI 101 - SUPREME COURT]. The impugned order is modified to the extent of setting aside the demand, interest and penalties under ‘Business Auxiliary Service’, ‘Technical Inspection and Certification Services’ - demand, interest and penalties in regard to ‘GTA Service’ is set aside for the extended period. The details as to whether GTA services were used only for export is present. Therefore, the appellant is liable to pay the tax on GTA services for the normal period along with interest. For the same reasons of revenue neutral situation, the penalties are set aside entirely. The appeal is partly allowed.
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