9911796707
TMI Blog2024 (5) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... , veneers, flush doors, block boards and allied products. They also act as a consignment agent for stocking and selling products of their principals, namely, M/s. Diamond Timber Industries and M/s. Bhawani Plyboard Pvt. Ltd. 2. A Show Cause Notice dated 16.04.2013 was issued to the appellant demanding Service Tax of Rs.1,69,45,149/- (including cess) under the category of "clearing and forwarding agent service" (C&F agent service). The Notice alleged that the appellant had received commission from their principals on account of sale of their products as a 'Commission agent', but had not paid Service Tax under the category of C&F agent service. 3. The Notice was adjudicated vide the impugned order and the demand of Service Tax of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 197) E.L.T. 465 (S.C.)]. They also relied on the decision of the Hon'ble High Court in the case of Gujrat Ambuja Exports Ltd. v. Union of India [2011 (269) E.L.T. 159 (Guj.)] wherein it has been held that the extended period cannot be invoked when all the facts are already known to the Department. In the present case, the demand for the period from March 2008 to 2011-12 has been issued on 16.04.2013 and accordingly, they submit that the demand for the period up to September 2011 is barred by limitation. 5.1.1.They also requested for adjusting the Service Tax already paid by them under the category of business auxiliary service against the Service Tax liability, if any, confirmed for the normal period under the category of C&F agent service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of C&F agent service, we observe that the appellant has considered this service as a taxable service under the category of 'business auxiliary service' and paid Service Tax for the period 2008-09. No objection has been raised by the department when they paid service tax for the said service under the category of 'Business Auxiliary Service'. Having accepted service tax under the category of 'Business Auxiliary Service', the department cannot raise the demand for the period 2008 to 2011-12, by invoking extended period of limitation. 8.1. We observe that in the case of Nizam Sugar Factory v. Collector of C.Ex., A.P. [2006 (197) E.L.T. 465 (S.C.), the Hon'ble Apex Court has held that extended period of limitation cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of 'Clearing and Forwarding Agency Service'. On appropriation, there would be no further liability of service tax on the appellant during the normal period of limitation from October 2011 to March 2012. Accordingly, we hold that the demand of service tax further for the normal period of limitation is not sustainable. 9. Regarding the demand of Service Tax of Rs.32,00,544/-, we observe that this demand has been confirmed on the commission of 2% received by the appellant on the goods sold on High Sea Sales basis. We observe that the appellant purchases the goods from the overseas suppliers on their own account and thereafter, they sell these goods to the Indian customers by adding a mark-up. The commission/mark-up received by them has ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
