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2020 (2) TMI 567 - AT - Service TaxLevy of service tax - Commission received by appellant from Money Exchange Houses abroad - Service charges paid to Foreign Banks against the service received by the appellant-bank - Service charges paid to Master Card International - export of services or not - Circular No.111/5/2009-ST dated 24.2.2009 - benefit of exchange houses - extended period of limitation. Commission received by appellant from Money Exchange Houses abroad - HELD THAT:- This issue is no more res integra and has been consistently held by the Tribunal as export of service and therefore, not liable to service tax under Finance Act, 1994 - Further, in the case of Kerala State Financial Enterprises Ltd. [2010 (10) TMI 801 - CESTAT, BANGALORE], this Tribunal by relying upon the decision in the case of Muthoot Fincorp Ltd. [2009 (8) TMI 236 - CESTAT, BANGALORE] held that the assessee is not liable to service tax as the same falls under the definition of export of service - the appellants are not liable to pay service tax as the service rendered by the appellant fall in the definition of export of service. Service charges paid to Foreign Banks against the service received by the appellant-bank - Service charges paid to Master Card International - HELD THAT:- The said services fall in the definition of ‘Import of Service’ and the same was made liable to service tax on reverse charge basis with effect from 18.4.2006 in view of the decision of the Bombay High Court in the case of Indian National Ship Owners Association [2008 (12) TMI 41 - BOMBAY HIGH COURT]. Therefore, up to 18.4.2006, appellants are not liable to pay service tax on reverse charge basis. Extended period of limitation - HELD THAT:- Commissioner himself has admitted that short-payment of service tax is not deliberate but owing to the reason of system failure. Further, the Commissioner has dropped the penalty under Section 78 by resorting to Section 80 of the Finance Act. Once the penalty under Section 78 is dropped, it means that the Original Authority did not find that there was an intention to evade payment of service tax on the part of the appellant. The essential condition for invoking the extended period of limitation is that there should be an intention to evade payment of service tax and the same is absent in the present case and therefore the extended period of limitation cannot be invoked - In the present case, the show-cause notice was issued on 3.9.2008 for the period 1.9.2004 to 31.7.2007, and the entire period up to 31.3.2007 is barred by limitation. Appeal allowed - decided in favor of appellant.
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