TMI Blog2018 (7) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... od. There is no justification, for invocation of extended period in such a scenario - demand barred by limitation. Penalty - Held that:- As it is already held in favor of the appellant on the point of limitation and has set aside the demand, in which case no penalty would be leviable on the assessee - penalty set aside. Demand of service tax on the packing materials - Held that:- Apart from the fact that the Notification No. 12/2003 excludes the value of the materials sold, the demand has been made under Rule 5 of Service Tax (Determination of Value) Rules, which Rules has already been struck down by the Hon’ble Delhi High Court in the Case of Intercontinental Consultants & Technocrats Pvt. Ltd. Vs. UOI [2012 (12) TMI 150 - DELHI HIGH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Value) Rules, demand of the said amount was raised till 31.12.2008. The notice culminated into an order passed by the original adjudicating authority confirming the demand on both counts as also imposing penalties. However, on appeal, the Commissioner (Appeals) observed that packing materials would not form part of the assessable value of the services in as much as the same is sold separately and in terms of Notification No. 12/2003-ST dated 20.06.2003, taxability cannot be fastened on the same. He also set aside the penalty imposed upon the appellant by observing that there was lot of confusion in the industry as well as legal circles as to whether the process of cutting and slitting would amount to manufacture or not in view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Otherwise also we note that the appellants registered themselves with the department on 20.09.2006 in which case the activities being under taken by them came to the notice of the Revenue. Even then a period of around three years was taken by the Revenue to issue SCN for the past period. There is no justification, for invocation of extended period in such a scenario. Accordingly, we hold the demand to be barred by limitation and allow the assessees appeal. 5. As regards Revenue s appeal, we note that the same is on two grounds. First on setting aside of penalty by the Commissioner (Appeals) and second on extending the benefit of Notification No. 12/2003, in respect of packing materials. As regards penalty, we observe that we have al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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