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2017 (10) TMI 1192 - CESTAT MUMBAIRepairs and maintenance of software - levy of service tax - whether classifiable under repairs and maintenance of goods or otherwise? - CBEC circular no. 70/19/03-ST dated 17.12.2003 - Held that: - even CBEC was not sure about the liability of service tax on the said services during the period 09.07.2004 to 06.10.2005. The first circular approving the liability of service tax on the said activity was issued on 07.10.2005 and the circular prior to that clearly held that the said service is not taxable. In these circumstances, it cannot be said that the appellants could not have had a bonafide belief that the said service was not taxable. Extended period of limitation - penalty - Held that: - The show-cause notice and impugned order does not give any specific grounds as to why extended period can be invoked in such circumstances. In these circumstances, the extended period of limitation cannot be invoked and consequently the demand of duty and penalty cannot be sustained. Appeal allowed - decided in favor of appellant.
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