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2018 (1) TMI 378 - AT - Service TaxBusiness Auxiliary Services - non-competing agreement - extended period of limitation - whether the activity undertaken by the appellant is taxable prior to 01.07.2012 or not? - Held that: - prior to 01.07.2012, non-compete agreements were not specifically taxable under Finance Act, 1994. It is only with effect from 01.07.2012 when Section 66E(e) of the Finance Act agreeing to the obligation to refrain from an act, or to tolerate an act or a situation or to do an act constituted a declared service on which service tax was payable with effect from 01.07.2012 - the period prior 01.07.2012, the amount recovered by the appellant by way of non-compete agreements are not liable to tax under the Finance Act, 1994. Whether the activity undertaken by the appellant falls under the category of Business Auxiliary Service or not? - Held that: - the sale promotion means that in case of sale promotion a large population of consumer is targeted - Admittedly, the appellants are not involved in such activity but they were paid for not to target the consumers. Therefore, the activity undertaken by the appellant do not qualify under Business Auxiliary Service. Whether the extended period of extension is invokable or not? - Held that: - As there were divergent view on classification of services in question, therefore, extended period of limitation is not invokable in the facts and circumstances of the case - demand barred by limitation. Appeal allowed - decided in favor of appellant.
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