TMI Blog2022 (9) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... present situation would be revenue neutral. In these circumstances the intention to evade duty cannot be alleged against the appellant and consequently the extended period of limitation could not be invoked. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 155 of 2011 - A/11093/2022 - Dated:- 5-9-2022 - MR. RAMESH NAIR, MEMBER (JUDICIAL) AND MR. RAJU, MEMBER (JUDICIAL) Shri Sudhanshu Bissa, Advocate for the Appellant Shri Dharmendra Kanjani, Superintendent (AR) for the Respondent ORDER This appeal has been filed by M/s. Nabros Pharma Pvt Ltd against confirmation of demand of service tax, interest and imposition of penalty. 2. The appellant has engaged in the manufacture of Pharmaceutical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of Mumbai in the case of Indian National Shipowners Association - 2009 (13) STR 235 (Bom.). He pointed out that they have a bona fide belief that no service tax is payable on a reverse charge basis. He further pointed out that whatever tax was paid by them on reverse charge basis on sales Commission and legal charges was admissible to them as cenvat credit and therefore, they could not have been possibly any intention to evade service tax and therefore extended period of limitation could not have been invoked. He relied on the decision of larger bench of tribunal in the case of Jay Yhushin Limited -2000 (119) ELT 718 (Tri. LB). He also relied on the decision of the Tribunal in the case of M/s Mark Bioscience Limited in the case of vide F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the tribunal in the case of Jayshree Impex (Supra), wherein under similar circumstances the demand and penalty was upheld on the grounds that the appellant had failed to disclose their liability in their service tax returns. In the instance case the appellant had shown service tax liability in their balance sheet and the same has not been disputed. Also it is seen in the case of Jayshree Impex (Supra) relied by revenue the issue of revenue neutrality has not been raised by the appellant. It is seen that the services of the sales commission are ordinarily admissible as cenvat credit to manufacturers and therefore the present situation would be revenue neutral . In these circumstances the intention to evade duty cannot be alleged again ..... X X X X Extracts X X X X X X X X Extracts X X X X
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