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2023 (11) TMI 827 - CESTAT CHENNAITime Limitation - suppression of facts or not - Invocation of Section 80 for setting aside the penalties in regard to the demand of Service Tax for the normal period - demand of short-paid Service Tax along with interest and penalties - HELD THAT:- On perusal of the Show Cause Notice in Paragraph 6, it is merely stated that though the Department requested for furnishing particulars of income earned under the Banking and Financial Services, the appellant had not furnished the same. This cannot be a ground for alleging suppression. Moreover, the Department has issued a Show Cause Notice for the earlier period. Being so, the Show Cause Notice issued invoking extended period for the subsequent period cannot sustain. There is no positive act of suppression brought forth and established by the Department to establish intent to evade payment of Service Tax - the Show Cause Notice is therefore time-barred. Invocation of Section 80 for setting aside the penalties in regard to the demand of Service Tax for the normal period - HELD THAT:- From the facts and evidences narrated as above, we find that the issue is wholly interpretational in nature and the appellant who is engaged in manufacture was under bona fide belief that their activity of Bill Discounts given to suppliers of spare parts could not amount to activity under Banking and Financial Services - the appellant has given plausible explanation for non-payment of Service Tax during the disputed period. The penalties imposed therefore requires to be set aside. The impugned order is modified to the extent of setting aside the demand for the extended period and confirming the demand for the normal period. The penalties imposed for the normal period are also set aside - Appeal allowed in part.
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