9911796707
TMI Blog2018 (10) TMI 1560X X X X Extracts X X X X X X X X Extracts X X X X ..... per facts on record, the appellant entered into a contract with M/s TRF Ltd., Jamshedpur for promoting sale of their products by informing the company of prospective markets and potential customers, to maintain close contract with all customers and consultants in the territory of northern reason and generate, acquire and forward the enquiries to M/s TRF Ltd. Revenue by entertaining a view that the said activities of the appellant amounted to provide services liable to service tax under the category of Business Auxiliary Services, raised demand to the extent of Rs. 11 lakhs by way of issuance of a show cause notice dated 18.10.2014 for the period from 01.04.2009 to 30.06.2012. The said demand was based upon the information and figures contai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the assessee to pay the service tax and nonpayment by itself would lead to invocation of longer period of limitation. He accordingly, prays for rejection of the appeal. 6. After careful consideration of the submissions made by both the sides and after going through the impugned order, I find that the lower authorities have invoked the longer period only on the ground that the appellant had not paid the service tax. However, I find that the appellants were reflecting value of the services in their profit and loss account maintained in the ordinary course of business. Such reflection of the activities in the profit and loss account has been held to be a reason for not allowing the revenue to invoke the extended period. Inasmuch as, pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt stands followed by the Tribunal as also by the High Courts in a number of decisions. One such reference can be made to the Hon'ble Delhi High Court's decision in the case of M/s Bharat Hotels Ltd. Vs Commissioner of Central Excise reported at 2018 (12) GSTL 368 (Del.) wherein it was held as under:- "27. Therefore, it is evident that failure to pay tax is not a justification for imposition of penalty. Also, the word 'suppression' in the proviso to Section 11A(1) of the Excise Act has to be read in the context of other words in the proviso, i.e. "fraud, collusion, wilful misstatement". As explained in Uniworth (supra), "misstatement or suppression of facts" does not mean any omission. It must be deliberate. In other words, there must be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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