2018 (12) TMI 254 - AT - Service Tax

Tribunal rules in favor of service provider, setting aside service tax demands and penalties.

The Tribunal ruled in favor of the service provider in appeals against Order-in-Appeal dated 04.03.2011 and 29.01.2014, setting aside the demands and ... Time limitation - suppression of facts or not - demand of service tax on cleaning services - Held that:- The Revenue was having full knowledge of the activities of the appellant as early as 13.08.2007, however, by invoking extended period of limitation with allegation of suppression show cause notice was issued on 28.10.2009 and the said show cause notice was issued for the period from November, 2005 to January, 2008 - the said SCN is hit by limitation and, therefore, not sustainable - demand set aside - appeal allowed - decided in favor of appellant. Issues:1. Appeal against Order-in-Appeal dated 04.03.2011 confirming demand of Service Tax.2. Appeal against Order-in-Appeal dated 29.01.2014 dropping part of the demand of Service Tax.Analysis:Issue 1: Appeal against Order-in-Appeal dated 04.03.2011The appellant, registered for 'Cleaning Services,' received a show cause notice for demand of Service Tax for the period from November 2005 to January 2008. The appellant contended that the show cause notice was not sustainable as the Revenue had full knowledge of the activities since 13.08.2007. The appellant argued that the show cause notice was hit by limitation and not legally valid. The Tribunal agreed with the appellant, setting aside the Order-in-Appeal dated 04.03.2011, stating that the show cause notice was indeed hit by limitation and unsustainable.Issue 2: Appeal against Order-in-Appeal dated 29.01.2014The appellant received another show cause notice for demand of Service Tax for the period from 2006-07 to 2009-10, alleging suppression of facts. The appellant argued that this notice was also unsustainable, citing a ruling by the Hon'ble Supreme Court. The Tribunal found that the show cause notice dated 29.09.2011 was not sustainable, as it covered a period already addressed in the earlier notice dated 28.10.2009. Therefore, the Tribunal set aside the confirmation of demand of Service Tax and penalties sustained through the Order-in-Appeal dated 29.01.2014. The Tribunal allowed the appeals filed by the service provider and dismissed the appeal filed by the Revenue.In conclusion, the Tribunal disposed of all appeals, pronouncing the judgment on 20.11.2018, in favor of the service provider, setting aside the demands and penalties imposed by the Revenue.