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TMI Blog2011 (9) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Appellants Shri A.K. Batra and Shri A.K. Mishra, Advocates for the Respondent Per Archna Wadhwa (for the Bench): Being aggrieved with the orders passed by Commissioner (Appeals) vide which he has set aside the demand of Service tax of Rs. 5,18,306/- from M/s. Centre Point Colour Lab and Service Tax of Rs. 1,25,045/- from M/s. Agrawal Photo Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. CCE, Calicut reported in [2007 (5) STR 423 (Tri-Bang)] as also in the case of Bharat Sanchar Nigam Ltd. vs. Union of India reported in [2006 (2) STR 161 (SC)] and Adlab vs. CCE, Bangalore reported in [2006 (2) STR 121 (Tri)]. He has accordingly set aside the demand of duty against the respondents 4. We find that the issue on merits is no more res integra and stands settled in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t matter of consideration by the Government as also by the Tribunal. Government in its circular F.No. 233/2/2003-CX-4 dated 7.4.2004 addressed to the Punjab Colour Lab Association had clarified that service provider was entitled to claim exemption in respect of inputs, material consumed / sold to the service recipient. Apart from the above clarification, the earlier decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure or negligence in not taking licence or not paying duty is not sufficient to invoke extended period. By applying the ratio of law declared in the above decision, we find that since the earlier decisions of the Tribunal were in favour of the assessee, it has to be held that there was bonafide doubt about the inclusion of the cost of material in the cost of services. If that be so, no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . By applying the ratio of the above decision to the facts of the present case, we hold that the demand beyond the period of limitation is time barred and no penalty is required to be imposed. Matters are remanded for requantifying the duty demand falling within the period of limitation. While requantifying the duty, the claim of the appellants as regards the credit of duty/ tax paid on the raw ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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