2018 (8) TMI 1588 - AT - Service Tax

Time Limitation - BAS - Sight formation and clearance service - failure to pay service tax - demand of service tax - Held that - It is seen from the record that the Revenue has already raised for the same period for the services rendered to the same clients, where SCN was dropped on the ground of limitation - there is no infirmity in the view taken by the Commissioner (Appeals) that the demand raised afresh for the same period in a different category of service is hit by time bar - appeal dismissed - decided against Revenue.

Summary

Issues:
Revenue appeal against OIA No. 108/10-ST dated 16.08.2010 regarding service tax demand for certain mining activities.

Analysis:
The appeal before the Appellate Tribunal CESTAT CHENNAI involved a dispute over the payment of service tax by a respondent engaged in mining/quarrying contracts. The Revenue contended that the respondent had failed to pay service tax for activities related to "Drilling & Blasting to remove weathered rock." The demand for service tax was made covering the period from 10.09.2004 to 31.03.2006 under the categories of BAS and Sight formation and clearance service. The adjudicating authority upheld the service tax demand of &8377; 10,24,738, but the same was set aside in the impugned order on the ground of time bar.

During the hearing, the Revenue argued that the activities undertaken by the respondent did not amount to manufacture, and thus, service tax was liable to be paid under BAS. On the other hand, the respondent's advocate pressed for upholding the impugned order that dropped the demand on the basis of time bar. After considering the submissions from both sides and examining the records, the Tribunal found that the demand raised afresh for the same period under a different category of service was indeed time-barred.

The Tribunal referenced a previous case and held that the demand for service tax for the same period but under a different category of service was not sustainable due to being hit by the limitation period. The Tribunal upheld the decision of the Commissioner (Appeals) to drop the demand on the ground of time bar. Consequently, the impugned order was upheld, and the appeal filed by the Revenue was rejected. The judgment was pronounced in the open court by the Tribunal members.