The Tax Publishers 2018 TaxPub(ST) 1545 (CESTAT-Del)

 

Blackstone Rubber Industries (P) Ltd. v. CCE

 

FINANCE ACT, 1994

--Demand of service tax--Invocation of extended period of limitationNo mala fide intention to evade payment of tax----Where, there was no mala fide intention on the part of the assessee to evade payment of duty, therefore, the extended period of limitation was not invocable against it.--Assessee-company was recipient of Goods Transport Agency service. Revenue raised demand of service tax and imposed penalty by invoking extended period of limitation on the ground of failure to produce documentary evidence to show that the transporters had deposited the service tax with the Government in remand proceedings. Held: Since matter was remanded for verification of documents, it was obligatory on the part of the assessee to produce such documents. But, there was no allegation or evidence to show that non-payment of service tax was with an intent to evade payment of duty as the assessee was paying service tax on reverse charge basis in respect of all the GTA services so received, there could be no mala fide intention on its part to evade payment of duty, therefore, extended period of limitation would not be invocable against it and penalty was not imposed.

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