9911796707
TMI Blog2025 (4) TMI 1330X X X X Extracts X X X X X X X X Extracts X X X X ..... imposed under Sections 77 and 78 of the Finance Act, 1994 on the appellants. 2. Brief facts of the case are that during the course of audit conducted by CERA on the records of the appellants, it was observed by the Department that the appellants had not paid service tax on 'multi service activities income' and on 'other income' relating to the period July, 2003 to September, 2004. Further, it was also observed that the income under such heads of accounts were also not declared by the appellants in the ST-3 returns filed by them. On the basis of the audit objection, the Department had initiated show-cause proceedings against the appellants, seeking for demand of service tax under the category of 'Business Auxiliary Service' (BAS), defined u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Advocate also submitted that the entire demand is barred by limitation of time inasmuch as there is no element of suppression, willful mis-statement etc., in defrauding the government revenue. 4. On the other hand, learned AR appearing for the Revenue reiterated the findings recorded in the impugned order. 5. Heard both sides and perused the case records. 6. The definition of BAS as per Section 65(19) ibid, both un-amended (01.07.2003 to 09.09.2004) and amended (w.e.f. 10.09.2004) are relevant for consideration of the present dispute. Thus, the definitions are extracted herein below:- "(19) "Business auxiliary service" means any service in relation to,- (i) promotion or marketing or sale of goods produced or provided by or belongi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation of prospective customer or vendor, public relation services, management or supervision and includes services as a commission agent, but does not include any information technology service and any activity that amounts to manufacture within the meaning of clause (f) of Section 2 of the Central Excise Act, 1944 (1 of 1944). Explanation.- For the removal of doubts, it is hereby declared that for the purposes of this clause "information technology service" means any service in relation to designing, developing or maintaining of computer software, or computerized data processing or system networkin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 004 were not covered under the definition of BAS, we are of the view that the appellants were not liable to pay any service tax under such taxable category. We find that the learned adjudicating authority has confirmed the entire demand, proposed for recovery in the SCN dated 21.04.2009, without proper appreciation of the statutory provisions vis-à-vis the activities undertaken by the appellants that those will not fall under the scope of the definition upto the period 09.09.2004. Further, the appellants' submission that they had paid the service tax for the period post 10.09.2004 on multi services activities and on the miscellaneous income, were also not considered in their proper perspective inasmuch as the benefit of tax amount al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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