2018 (8) TMI 801 - AT - Service Tax

Time Limitation - Renting of Immovable Property Service - SCN was issued on 24.09.2012 while period of demand is 01.06.2007 to 31.03.2010 which is entirely beyond the normal period of one year - Held that - The Commissioner (Appeals) has invoked Section 80 implies that there was no willful mis-statement or suppression of fact or deliberate evasion of service tax in this case in which circumstances extended period cannot be invoked rendering the entire demand time barred - extended period cannot be invoked - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Confirmation of service tax demand
- Penalty under Section 78
- Benefit of Section 80 of the Finance Act, 1994
- Period of demand beyond normal one year
- Invocation of extended period
- Willful mis-statement or suppression of fact
- Bona fide belief
- Tribunal's decisions in similar cases

Confirmation of service tax demand:
The appeal was filed against Order-in-Appeal confirming a service tax demand of &8377; 3,72,629 under "Renting of Immovable Property." The Show Cause Notice was issued on 24.09.2012, while the period of demand was from 01.06.2007 to 31.03.2010, which exceeded the normal one-year period.

Penalty under Section 78:
The penalty under Section 78 was dropped by the lower authorities on the grounds that the appellant was entitled to the benefit of Section 80 of the Finance Act, 1994. The Commissioner (Appeals) invoked Section 80, indicating no willful mis-statement, suppression of fact, or deliberate evasion of service tax, leading to the extended period not being invoked.

Invocation of extended period:
The conflicting decisions regarding the taxability of the service during the relevant period were noted. However, as the appellant did not deposit the duty and did not inform the Revenue, the extended period was invoked. The Tribunal referred to previous decisions where due to disputes and retrospective amendments, the extended period was not invoked based on a bona fide belief.

Tribunal's decisions in similar cases:
The Tribunal cited cases like Sujala Pipes Pvt. Ltd. vs. Commissioner of Customs, Central Excise & Service Tax and Jindal Vegetable Products Ltd. vs. Commissioner of C. Ex., emphasizing that due to disputes and differing opinions on tax liability, the extended period cannot be invoked if there is a bona fide belief. The demand was set aside on account of being time-barred, and the appeal was allowed in that regard.

This judgment highlights the importance of considering the circumstances of each case, the presence of willful misstatement, suppression of facts, and the impact of conflicting decisions on the invocation of the extended period for tax demands.