TMI Blog2011 (6) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... he adjudication accordingly shall end in re-computing service tax demand. Whether non-disclosure of such fact in the return shall amount to suppression - penalty - Cenvat credit of a higher amount was unduly claimed - appellant disclosed that it was under bona fide belief that service provided by the appellants as visiting network service provider was exempt and not taxable – Held that:- Failure to make such disclosure in return or submitting entire fact by any letter accompanying its return appears to be a case of wilful suppression. assessee had paid service tax correctly in terms of provisions of the Act and Rules made thereunder such declaration becomes faulty in absence of bona fide statement either on the return or made through a l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2/99-S.T., dated 21-6-1990, and Service Tax Circular No. 90/1/2007-S.T., dated 3-1-2007 to submit that the department s clarification is that roaming telecom service is not liable to be taxed in the hand of visiting network service provider for the reason that home network provider is liable to pay service tax in respect of that service. 3. Per contra, learned DR submits that when consideration is received for the service provided by the appellant as visiting network service provider that was in relation to taxable service and was telecom service. Once the service provided is telecom service and taxable service but that has not suffered service tax in the hand of the appellant by virtue of service tax exemption granted that becomes exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, liability of the appellant is to be recalculated giving set off on Cenvat credit limiting to 35% in respect of each return period. The adjudication accordingly shall end in re-computing service tax demand. 6. We limit demand in adjudication to this extent. 7. So far as levy of penalty is concerned the case of the appellant is that Cenvat credit of a higher amount was unduly claimed. Sample copy of the return is available in appeal folder at page 23 of the paper book. That nowhere discloses bona fide of the appellant. Had the appellant disclosed that it was under bona fide belief that service provided by the appellants as visiting network service provider was exempt and not taxable, the appellant would have clearly guided the depar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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