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2018 (12) TMI 1365 - HC - Service TaxPenalty u/s 77 of FA - Issue on doubt - site formation service - Government of India, Ministry of Finance had a doubt till the issuance of Circular dated 29.10.2006 whether service tax was leviable on the services of site formation - Held that:- In so far as the order which took converse view and assailed by the Assessee in other matters are concerned, there the consideration ends with a finding on nature of contract. The CESTAT holds that contract of Assessee with WCL is for a site formation. There the provisions of Section 80 of Finance Act or then circular dated 12.11.2007 are totally omitted from consideration. The said order, therefore, also show non application of mind. Extended period of limitation - Section 73[1] of the Finance Act, 1994 - Held that:- Impact of “confusion” about nature of activity undertaken is already directed to be looked into and matters are remanded back. If claim of assessee, that service tax is paid on transportation charges is incorrect, effect thereof or then entitlement of department to invoke “extended period” due to is may be a material consideration. This also appears to have escaped attention. This view, therefore, again shows non application of mind. The impact of clarificating circular dated 12.11.2007 has not been considered at all. As the other matters need a relook, it is in the interest of justice that this view is also given a fresh thought by CESTAT. Appeal restored back to file of the CESTAT for its further consideration as per law.
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