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2020 (2) TMI 692 - AT - Service TaxBusiness auxiliary service and GTA services provided under two different firms name separately - composite service or not - Appellant owns another proprietary firm viz., SR Transporters who are also registered with the Central Excise department for providing Goods Transport Agency services - only allegation of the department is that both firms are owned by the same person and are located in nearby plots - extended period of limitation - HELD THAT:- It is undisputed that the two firms have been given separate registrations by the department for different activities. There is nothing on record to show that the department has declined to give registration to one of the units holding that both the units are the same and the services rendered by both firms amount to rendition of a single service requiring service tax to be paid accordingly. It is also not in dispute that both the firms have been paying service tax and filing returns as required under the law - the allegation that there was any suppression of facts or wilful misstatement or fraud on behalf of the appellant is unsustainable. Both GTA services and business auxiliary services have separate entries in section 65 of the Finance Act, 1994. To allege that services rendered by two different firms, may be for the same client, merely on the ground that both are co-located and are owned by the same person, in our view, is not correct. Only if the contract is for a composite service rendered by a particular service provider the question of the essential character of the service comes into play. Therefore, we do not find any grounds whatsoever to hold that the services provided by the appellant are composite services. There is no ground, whatsoever, for clubbing the value of services rendered by the two firms. As the basis for demand is incorrect, the demand, interest as well as penalties need to be set aside - appeal allowed - decided in favor of appellant.
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