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2022 (1) TMI 208 - AT - Service TaxReverse charge mechanism - GTA service - appellant were proprietorship concerns - section 68(2) of the Act r/w Notification 30/2012-ST dated 20.6.2012 - Extended period of limitation - HELD THAT:- It clearly shows that the department had full knowledge about the activities of the appellant way back in the year 2016 itself therefore in my view the plea of suppression or non-disclosure with intent to evade service tax is not available to the department. It is settled legal position that mere failure to declare does not amount to mis-declaration or willful suppression and therefore extended period cannot be invoked in such a situation. There is no evidence of fraud or suppression of fact. The certificates, issued by the respective State Governments, to the effect that the said proprietary concerns are registered as Factories have also been submitted by the Appellant before the authorities concerned and before me as well. A perusal of the same will lead to inevitable conclusion that the proprietary concern to whom GTA services were provided by the appellant, were authorized dealers of Piggio Auto and were registered as factories therefore in view of Section 68(2) ibid read with Notification (supra) those they are liable to pay service tax under reverse charge mechanism. Therefore the demand for the period April, 2016 to June, 2017 is also liable to be set aside. Although the appellant has also raised the issue of threshold exemption under notification no.33/2012-ST dated 20.62012 but as it is already held that since those proprietary concerned have been registered as factories, they are liable to pay service tax under reverse charge mechanism, therefore the issue of threshold exemption, is not decided upon. Appeal allowed - decided in favor of appellant.
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