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TMI Blog2011 (7) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant will be entitled to assessment treating the value received as cum-tax value and therefore, the demand amount would have to be reduced subject to verification. Extended period of limitation - held that:- appellant has not shown their bona fide they have not reflected the actual service charges received by them towards the value of the taxable service in their statutory returns and further the Show Cause Notice clearly alleges that there has been suppression with intention to evade on their part and demand has also been raised u/s 73 of the Finance Act, 1994. The service tax law does not make a distinction between the private sector assessee and a public sector assessee and the provisions are equally applicable to both categories of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax have amount been deposited with the department and hence the appellant have paid excess service tax even though no tax were leviable for leased circuits, (d) The impugned Show Cause Notice does not mention the applicability of extended period and hence the demand is time-barred as held in case of PIL Ltd. v. CST, Kolkata - 2008 (10) S.T.R. 405 (Tri.-Kol.), (e) The appellant namely BSNL being a public sector organization cannot be attributed with mala fide and hence neither interest can be charged nor penalty can be imposed on a public sector unit like the appellant in view of the following decisions of the Tribunal :- (i) BSNL v. CCE, Ahmedabad - 2009 (14) S.T.R. 359 (Tri. - Ahmd.) (ii) BSNL v. CCE, Nagpur - 2007 (7) S.T.R. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service has been carved out w.e.f. 16-7-01. From the reply dated 27-9-05 to the Show Cause Notice, submitted by the appellants, it is clear that they have been providing leased lines of ACSR wire and also of iron wire. It has been clarified in the said reply and the technological details have been given to the effect that ACSR wire based line can be used for transmission of speech such as telephone circuit, PBS/PABX etc., whereas iron wire is used for only transmission of data. We further find that the decision of the Chennai Bench of Tribunal in the case of Chennai Telephones (supra) has been rendered on the premises that the leased circuits in that case was used only for data communication and not for voice communication vide para 6 ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax separately is correct, the appellant will be entitled to assessment treating the value received as cum-tax value and therefore, the demand amount would have to be reduced subject to verification of the claim by the ld. Advocate. 7. As regards the argument that extended period cannot be applied in respect of the appellant, firstly on the ground that there is no mention in the Show Cause Notice of the same and secondly on the ground that appellant being a public sector unit cannot be attributed any mala fide and consequently no penalties and interest can also be charged, we are unable to accept such an argument. Firstly, appellant has not shown their bona fide they have not reflected the actual service charges received by them toward ..... X X X X Extracts X X X X X X X X Extracts X X X X
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