CESTAT partly allowed the appeal. It set aside the demand of...

CESTAT partly allowed the appeal. It set aside the demand of service tax under the Business Support Service and Renting of Immovable Property Service heads, finding no merit in those classifications. It upheld the service-tax liability on import of services under the reverse-charge mechanism categorized as Business Auxiliary Services. The Tribunal affirmed invocation of the extended period of limitation for assessment, and sustained penalties under ss.76, 77 and 78 of the Finance Act, 1994 for failure to register, file returns and discharge tax, as well as interest under s.75 for delayed payment. Result: assessment and recoveries sustained in part (reverse-charge, limitation, penalties, interest); other demands quashed.

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