75th Founding Day Lecture Meeting on “India@2030” Know More

December 2011

Assessee provided space at their authorised service station to financial institutions — Qualified as Business Auxiliary Services — Assessee did not approach Revenue seeking clarification — Held assessee cannot be charged with willful intent to evade duty on the basis of non-approaching for clarification, longer period of limitation inapplicable.

By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
fiogf49gjkf0d
Facts:

The assessee provided space at their authorised service station to financial institutions. The service provided by the assessee to the financial institutions amounted to Business Auxiliary Services according to the Revenue. The Revenue contended that the assessee did not pay service tax at the required time and thus was liable to be charged with willful intent to evade duty as they did not approach the Revenue seeking clarification and the Department discovered only during investigation by the Department.

Held:

It was established that mere non-approaching the Revenue seeking clarifications cannot be a valid reason for applying extended period of limitation unless the same is done, with a willful intent to evade payment of duty. The demand was held as barred by limitation.

Download PDF

You May Also Like

(2011) 39 VST 213 (Bom.) Addl. Commissioner of Sales Tax v. Bunge India P. Ltd.

Assessee availed credit relating to capital goods used in provision of service — Revenue claimed that the credit was availed in excess of 20% of the tax paid every month — Application of restriction held erroneous — Credit allowed by way of a remand.