TMI Blog2011 (9) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the cost of goods and material used and consumed in the course of such services - However it is hit by time bar, major part of the demand stands raised by invoking the extending period of limitation - when there is a bonafide doubt as regards the non-excisability of the goods due to divergent views of the High Courts, extended period of five years cannot be invoked - no malafide can be attributable to the appellant so as to invoke the extended period of limitation - appellant is liable to pay service tax for the period which falls within the normal period of limitation - no penalty is required to be imposed on the appellants - Appeal disposed off. - ST/21 of 2008 - - - Dated:- 1-9-2011 - Ms. Archana Wadhwa, Mr. Rakesh Kumar, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 4. We find that the issue on merits is no more res integra and stands settled in favour of the Revenue by the Larger Bench decision of the Tribunal in the case of M/s. Agrawal Colour Photo Industries vs. Commissioner, vide Misc. order No. ST /129/11 dated 11.8.2011. It stands held in the said decision of the Larger Bench that the value of services in relation to photography would be the gross amount charged including the cost of goods and material used and consumed in the course of such services. 5. However, we note that period involved in the present appeal is from July, 2001 to September, 2005 and show cause notice was raised on 24.11.2005. As such, a major part of the demand stands raised by invoking the extending period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court Cases 117 has observed that malafide intention is an essential element for invokation of longer period of limitation. There being different views of High Courts expressing conflicting opinion on the point of dispute are sufficient reasons for any person to entertain a bonafide belief. In the circumstances, mis-statement or suppression of facts, if any, cannot said to be wilful. 6. By applying the ratio of law declared in the above decision, we find that since the earlier decisions of the Tribunal were in favour of the assessee, it has to be held that there was bonafide doubt about the inclusion of the cost of material in the cost of services. If that be so, no malafide can be attributable to the appellant so as to invoke the exten ..... X X X X Extracts X X X X X X X X Extracts X X X X
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