TMI Blog2015 (10) TMI 2728X X X X Extracts X X X X X X X X Extracts X X X X ..... liability is due under the provisions of Section 66A of the Finance Act, 1994 - the Service Tax liability for the period April, 2009 to December, 2009 upheld along with interest. Penalty - Held that:- There is no necessity to impose the penalty on the appellant as the entire issue was disputed and it is a question of interpretation - penalty set aside. Appeal allowed in part. - Appeal No. ST/67/2012-MUM - A/3488/2015-WZB/STB - Dated:- 1-10-2015 - S/Shri M.V. Ravindran, Member (J) and C.J. Mathew, Member (T) Shri J.H. Motwani, Advocate, for the Appellant. Shri R.K. Das, DC (AR), for the Respondent [Order per: M. V. Ravindran, Member (J)]. This appeal is directed against Order-in-Original No. P-I/Commr/ST/29/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is his submission that the Service Tax liability under the reverse charge mechanism is applicable from 18-4-2006 only and prior to that tax liability would not arise on the appellant. He would submit that this is the view the Board took in Circular No. 276/8/2009-CX-8A, dated 26-9-2009. As regards the period post 18-4-2006 to Dec., 2009, it is his submission that the show cause notice dated 20-10-2010 is invoking the extended period for the demand of the Service Tax liable under reverse charge mechanism. He would submit that the issue of reverse charge mechanism was agitated before the various Courts and Apex Court had settled the issue on 18-8-2011, when the review petition filed by the Department against the consistent judgment was reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arious services like, Business Auxiliaiy Services, Management or Business Consultancy services, Business Support Services, Consulting Engineers Service, Intellectual Property Services, Commercial Training or Coaching Services and Architectural Services from the entities who are situated abroad and had paid the amount for their services through Banking channels. It is a case of the Revenue that from 1-1-2005, the provisions of Rule 2(1)(d)(iv) will be applicable and tax liability arise. 6.3 We do not agree with adjudicating authority's reasoning or the arguments put forth by the AR for more than one reasons :- (a) Firstly, that the Service Tax liability under the reverse charge mechanism for the period April, 2005 to 17-4-2006 does ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 20-10-2010 invoking the extended period is hit by limitation in respect of the demand for the period 18-4-2006 to 31-3-2009. We are of the view that the extended period cannot be invoked in this case as there was no wilful suppression or mis-statement, as the entire issue was being agitated before the various judicial forums and appellant could have entertained a bona fide belief that the Service Tax liability does not arise on the service rendered by the entity situated abroad. To this extent, we allow the appeal filed by the assessee. As demands are set aside, question of interest and penalties does not arise. 7. We find that the Service Tax demand for the period April, 2009 to Dec., 2009 is to be upheld as confirmed by the adjudic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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