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2019 (5) TMI 1102 - AT - Service TaxClassification of services - Man Power Recruitment and Supply Services or not - appellant engaged in deputing labour force for activities of packing, loading, un-loading, bagging, handling to their clients - time limitation - HELD THAT:- The appellants were engaged in the supply of labour to various pharmaceutical companies and were raising bills by mentioning various activities undertaken like packing, loading, un-loading, bagging, handling etc. However it is a fact that the charges of services were determined based on the number of persons or hours worked for rendering services and charging service charges. The appellants also received performance production incentives for the services rendered. Even though the appellants may be mentioning the nature of services rendered by them to the service recipients, however it is an accepted fact that the charges for the services were recovered by them on the basis of number of persons or hours worked for rendering the services. In such case, the services rendered by the appellants would fall under the category of “Manpower Recruitment or Supply Agency” services for the impugned period which is liable for service tax. Extended period of Limitation - Penalty - suppression of facts or not - HELD THAT:- There is no charge of deliberate non-payment of service tax due to suppression of facts or malafide intention of the Appellants has been proved -The extended period of limitation for raising demands can be invoked only when the person liable to pay tax has intentionally or deliberately involved in evasion of service tax - It is clearly appearing from the statements of the proprietors that they did not take service tax registration being unaware of the service tax liability and were under the bona fide belief that their services are of packing, loading, unloading and other activities, which do not fall under the category of Manpower Recruitment and Supply Agency Service - extended period of limitation and penalty cannot be invoked. The demand is hit by limitation of time and is not sustainable to the extent the same has been made by invoking the period of limitation i.e. beyond one year from date of show cause notice - demand alongwith interest and penalties do not sustain - appeal allowed - decided in favor of appellant.
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