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2018 (5) TMI 1716 - AT - Service TaxExtended period of limitation - Non-payment of service tax - advertising services - appellant case is that they did not pay the service tax as they were under the impression that service tax was not payable on these services - U.O. Note No. 13643/CT.II(1)/2004-3, dated 24.02.2005 issued by Special Chief Secretary, Government of Andhra Pradesh - demand with interest and penalties by invoking extended period. Held that:- After the UO note was issued, the appellant had no excuse not to add the value of services rendered to the Government departments in their returns and pay service tax on the services rendered by them to the Government departments. They cannot plead ignorance after the UO note is issued - The demand of duty is clearly recoverable under the proviso to Section 73 (1), from 24.02.2005, the assessee has definitely suppressed the value of taxable services rendered and evaded paying service tax in full knowledge that their services are taxable - The demand is sustained and the extended period of demand is invokable from 24.02.2005 till the date of show cause notice Penalty u/s 76 and 78 - Held that:- Since it is now well established fact that no penalty can be imposed under section 76 of Finance Act, even before amendment to this Section w.e.f. 14.05.2015 or prior to it, the penalty imposed under section 76 is, therefore, set aside - penalty u/s 78 to be modified. Appeal allowed in part.
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