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2016 (11) TMI 788 - CESTAT NEW DELHIDischarge of tax liability - GTA service performed by a society of Chhattisgarh State, statutory body performing statutory functions - Held that: - The circular No. 89/7/2006-ST dated 18.12.2006, has observed that the activities performed by Sovereign/ Public Authorities under the provisions of law are in the nature of Statutory Obligations and are being undertaken as mandatory and statutory functions. They are not in the nature of services to any particular individual for any consideration and as such, they do not constitute taxable service and no service tax would be leviable on the same. Admittedly, the authority is a Government State Body assisting the farmers in procuring their produce under minimum retail price and assisting the farmers for sale of their produce. The clarification issued by Board to the above fact is a sufficient reason for the appellant, who were performing their statutory duties, to entertain the bonafide belief that they were not liable to Service Tax. Otherwise also, I find that in the absence of any evidence to reflect upon any positive suppression or mis-statement with an intent to evade payment of duty longer period of limitation would not be available to the Revenue. Penalty set aside - Service Tax as also the interest stand confirmed against the assessee as not being challenged - appeal disposed off - decided partly in favor of appellant.
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