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2018 (8) TMI 902 - AT - Service TaxLevy of service tax - outstanding advances along with interest - Consulting Engineer Services - Pure agent services - Held that:- The respondent has provided only “Consulting Engineer Services”, on which they have discharged the service tax liability. The work order issued by the Government Department is in the nature of cost plus contract, wherein the respondent has been appointed as the implementing agency on behalf of the Government Department and the money has been received as a trustee. Further, the respondent is liable to account for every single rupee spent for on behalf of the Government. They are not entitled to appropriate a single rupee more than the agreed 7% as agency charge or administrative charges. Further, the activity of the respondent is held to be in the nature of pure agent. As such, no service tax can be demanded on the amount of advance received and /or on the amount spent out of that advance for the purpose of the project. Extended period of limitation - Held that:- There is absence of the condition precedent for invocation of the extended period of limitation - the show cause notices is not maintainable for invocation of the extended period of limitation. Appeal dismissed - decided against Revenue.
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