9911796707
TMI Blog2012 (8) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... the said period and the notice has been adjudicated confirming the demand along with interest and penalties. The appellants also have filed an application for raising additional grounds which they submit are legal grounds. This application is also being considered in this proceeding 2. The said service was exempted from payment of service tax under Notification No. 28/2004-ST dated 17.9.2004. However, this exemption was withdrawn by Notification No. 10/2005-ST dated 3.3.2005 with effect from 15.3.2005. When Notification No. 10/2005-ST was issued, Export of Service Rules, 2005 was also notified by Notification No. 9/2005-ST dated 3.3.2005 to be effective from 15.3.2005. As per the said rules the question whether any service was expo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... collect tax from the exporters From 24-06-2005 they started collecting such tax and paying to the Government. 4. The Airlines Industry then represented to the authorities that they were receiving payments in Indian Currency and the new amendment would cause hardship to the exporters and to them. Consequently the exemption under Notification 29/2005-ST dated 15.7.2005 was issued restoring exemption to such services from service tax as was available in Notf.No. 28/2004-ST dated 17.9.2004. The additional ground taken in the application for that purpose is that notification 29/2005-ST dated 15-07-2005 is only in nature of a clarification and hence it should apply retrospectively. We have considered this submission. We find that the noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice that is rendered to the exporters is taking the goods outside India and that activity is performed substantially outside India and there cannot be any doubt that the service was performed outside India. 8. After hearing arguments raised by the learned AR for Revenue, we in agreement with the argument advanced by the counsel for appellants. However, for a short period for 16.6.2005 to 23.6.2005 there is neither any legal provision which waived the tax liability of the Appellants nor did the appellant pay such tax. 9. In this matter the learned counsel submits that the demand is issued by SCN dated 31-01-07 invoking extended period of time and there is no ground for invoking extended period of time because he submits that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxes from the customers. That cannot a reason to waive the liability or to consider that the appellant had bonafide belief that tax was not payable for the said period. In fact when the appellant came to know of the position say on 23-06-2005 as per their statement, they should have paid service tax for the previous 7 days also. Therefore the argument that they were under the bonafide belief is not acceptable. So we consider that the extended period of time can be invoked in this case. At the same time, considering the peculiar nature of the circumstances, we are of the view that invocation of Section 80 of the Finance Act, 1994 is justified. We note that Section 80 provides for waiver of penalty imposed under Section 78 also. That means e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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