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2009 (10) TMI 206 - AT - Service TaxTour Operator Service-extended period- Notification No. 58/98-ST, dated 1.7.1998- Service tax levy on ‘Tour operator service’ was challenged by tourist taxi owners’ association before the High Court of which the assessee were members. During pendency of that petition, Notification No 58/98-ST, dated 1.7.1998 was issued granting exemption from payment of service tax on ‘tour operator service’ which exemtion was withdrawn on 1.4.2000. Thereafter, service tax on tour operator’s service become leviable w.e.f. 1.4.2000. On 30.4.2001, the High Court dismissed the petition filed by the ‘Tourist taxi owners’ Association challenging the constitutional validity of the levy. The assistant commissioner dropped the proceedings on the ground that the demand was barred by limitation. The commissioner revised the said order and held that failure on the part of the assesese to remit service tax dues specially when the High Court upheld the levy and their stubborn attitude of withholding the information by not filing the half yearly returns for the disputed period, was nothing but suppression of facts and deliberate and willful intent to evade payment of service tax and, therefore, extended period of time limit under section 73 was very much invocable in the instant case for demand of service tax for the disputed period. Held that- the findings of the commissioner is not sustainable. When everything was known to both sides, there could be no allegation of suppression. Therefore, the extended period of limitation was not available to the department. Since the demand has been raised after the expiry of the normal period of limitation, it was time barred and accordingly, the impugned order confirming tax demand and penalties was to be set aside and the appeal was to be allowed.
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