TMI Blog2019 (2) TMI 1303X X X X Extracts X X X X X X X X Extracts X X X X ..... . cannot be alleged against the appellant for the reason that there is no individual’s interest or benefit is involved and therefore, there cannot be an intention to evade payment of service tax. In respect of service provided other than the Government agencies, the appellant were admittedly paying the service tax. Therefore, there was a bonafide belief that being a Government organization and providing service to the government departments of the same Government of Gujarat, does not attract service tax. Hon'ble High Courts and the Tribunal had taken a consistent view that in case of non-payment of duty/ tax, malafide intention cannot be alleged in the case of Government Agency - appeals are allowed on limitation only. - Appeal No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to evade payment of service tax. He submits that the service tax was not being paid on the advice given by the Deputy Secretary, Government of Gujarat and being a Government enterprise, there cannot be any malafide intention to evade payment of service tax. He submits that in both the appeals the demand was raised invoking extended period of five years, therefore, the demand does not sustain on the ground of limitation itself. He placed reliance on the following judgments:- (a) Dy. Commissioner of Police, Jodhpur vs. CCE 2017 (48) STR 275 (Tri. Del.) (b) Commissioner vs. Markfed Refined Oil Allied Industries 2009 (243) ELT A91 (P H) (c) CCE vs. Bharat Yantra Nigam Limited 2014 (36) STR 554 (Tri. Del.) (d) CCE vs. Ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eclaration etc. cannot be alleged against the appellant for the reason that there is no individual s interest or benefit is involved and therefore, there cannot be an intention to evade payment of service tax. In respect of service provided other than the Government agencies, the appellant were admittedly paying the service tax. Therefore, there was a bonafide belief that being a Government organization and providing service to the government departments of the same Government of Gujarat, does not attract service tax. The Hon'ble High Court of Punjab Haryana in the case of Markfed Refined Oil Allied Industries (supra) has passed the following order:- The revenue has filed the instant appeal under Section 35G of the Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfined only to normal limitation period. In view of the circumstances of the case, the penalty also has to be waived by invoking Section 80. In the case of Haryana State Seed Certification Agency (supra), this Tribunal has held as under :- 7. We also observed that the show cause notice have been issued by the invoking extended period of limitation, the demand of extended period of limitation is not sustainable as there was no mala fide intention of the respondents not to pay service tax in the light of the clarification issue by the Commissioner of Service Tax, Ahmedabad on 27-9-2006, wherein it has been clarified as under : Para (2) : Office of the Commissioner of service tax, Ahmadabad clarified in that letter under referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d is not available to the Revenue. However, a part of the demand falls within the limited period, which would be re-quantified by the adjudicating authority. The above decision was upheld by the Hon'ble High Court of Rajasthan reported at 2018 (15) GSTL 661 (Raj). 5. In view of the above judgments, it can be seen that the Hon'ble High Courts and the Tribunal had taken a consistent view that in case of non-payment of duty/ tax, malafide intention cannot be alleged in the case of Government Agency. Therefore, ratio of the above judgment is squarely applicable in the case of present appeals. Accordingly, we set-aside the impugned orders and allow the appeals on limitation only without going into the merits of the case. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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