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2023 (12) TMI 852 - AT - Service TaxNon-payment of service tax - providing security guards to various organizations - intent to evade service tax or not - invocation of extended period of limitation - penalty - HELD THAT - Appellant have been registered with Service Tax department w.e.f.14.09.2000 and regularly paying service tax and filing returns. The Appellant submits that they have been providing security agency service mainly to Government agencies and some of the agencies to whom they provided security agency service declined to pay service tax - It is observed that the explanation offered by the Appellant for non payment of service tax is not acceptable. It is the responsibility of the Appellant to collect service tax from their clients on the invoices raised towards rendering of security services. There is no specific exemption available to security services rendered by the Appellant to Government Agencies. Thus the appellant is liable to pay service tax on the taxable services rendered by them during the period under dispute. The Appellant have been registered with Service Tax department w.e.f.14.09.2000 and regularly paying service tax and filing returns. The department raised the demand based on the service tax paid by the Appellant which have been reflected in the service tax returns. Thus the returns filed by the Appellant indicate the taxable value of the services rendered by them and the actual service tax paid by them. After the search by the department they have again raised separate invoices demanding service tax from the organizations who have not paid service tax but they declined to pay service tax This clearly indicate that the Appellant has not suppressed any information from the department with an intent to evade payment of service tax. Appellant has not suppressed any information from the department and hence extended period cannot be invoked in this case to demand service tax - the demands confirmed in the impugned order by invoking the extended period is not sustainable on the ground of limitation. The Appellant is liable to pay service tax if any along with interest for the normal period of limitation. As suppression with intent to evade payment of tax has not been established no penalty imposable on the Appellant. The demands confirmed in the impugned order by invoking the extended period is not sustainable. The Appellant is liable to pay service tax if any along with interest for the normal period of limitation. No penalty imposable on the Appellant - Appeal disposed off.
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