9911796707
TMI Blog2023 (5) TMI 567X X X X Extracts X X X X X X X X Extracts X X X X ..... okerage /commission. The department formed a view that the appellant have been receiving service of foreign agents for which they have not discharged the service tax liability as per the provision of the Finance Act, 1994. It has been the contention of the department that as per the provisions of section 66 A of the Finance Act, 1994 read with Section 65 (19) of the Finance Act, 1994 and Section 65 (105) (zzb) of the said act with regard to the Business Auxiliary Service, the appellant should have paid service tax on the services received by him from the persons based outside Indi. 1.2 After detailed inquiry following show cause notices came to be issued:- (i) Show cause notice No F. No. STC/4-20/O&A/2008 dated 17.03.2008 covering period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Denims & Exports Ltd.. Ahmedabad. under first prove to Section 73(1) of the Finance Act. 1994, as amended. Further, an amount of Rs 9,65,370- paid them on 27.04.2009 for the period from 01.04.2007 to 31.03.2008 is ordered to be appropriated towards the demand of service confirmed above". 2. The Learned Advocate appearing on behalf of the appellant at the outset submits that he is not contending the matter on merit but only on the points of limitation. It has been submitted by the learned Advocate that the adjudicating authority has dropped the demand for the period 01.07.2003 to 18.04.2006 on the ground that provision of Section 66 A of the Finance Act, 1994 came into operation only on 18.04.2006. It is submitted that appellant was not aw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of service tax and therefore , the extended period for demand of service tax is not invokable in their case. 2.3 The Learned Counsel on this point also submitted that the Tribunal in the following cases has taken the similar view. * Shree Ranie Gums & Chemicals Pvt. Ltd vs. CCE , Jaipur-II - 2017 (4) GSTL 340 (Tri.-Del) * Texyard International Vs. CCE, Thichy - 2015 (40) STR 322 (Tri. Chennai) * HT India Ltd Vs. CST, New Delhi - 2017 (7) GSTL 364 (Tri. Del) * Acl Mobile Ltd Vs. CCE, Delhi - 2019 (20) GSTL 362 (Tri. Del) In all the above decision it has been held by this Tribunal that there was a lot of confusion in the trade and a lot of litigation on the point of payment of service tax under reverse charge mechanism and henc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded time proviso is not invokable. The relevant extract of above Tribunal decision is reproduced below:- "5. We have carefully considered the submissions made by both the sides and perused the record. As conceded by the ld. Counsel, we are not going in the merits of the case. As per the submissions of the ld. Counsel, the demand is not sustainable for the extended period. We find that during the relevant period, in the light of the Hon'ble Punjab & Haryana High Court judgment in the case of Ambika Overseas (supra), the appellant was entitled for the Cenvat credit in respect of the service tax payable on commission paid to overseas commission agent. Therefore, even if the service tax was payable, there was a Revenue neutral situation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17.03.2008 invoking a period of five years and therefore, the second show cause notice should have been for normal period of demand and department should not have invoked the extended time period for demanding service tax . 4.1 From the facts, I find that the second show cause notice dated 20.03.2009 is beyond normal period of limitation and therefore, the matter is remanded back to the original adjudicating authority to re-adjudicate the matter in view of the above observation and confirm the service tax for the normal period of demand as provided under Section 73 (1) of the Finance Act, 1994. 5. The appeal is partly allowed with regard to demand of Rs. 21,57,937/- and is being remanded back for de novo adjudication only with regard to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
