https://www.taxtmi.com/caselaws?id=761300 CESTAT New Delhi held that a State-owned company liable for service tax on guarantee fees under reverse charge mechanism could not be penalized for suppression. The appellant, upon being informed of liability, paid the entire demanded amount in installments. The tribunal found no evidence of willful suppression or deliberate withholding of information, noting that government companies are presumed to act in good faith. While the extended period of limitation was wrongly invoked, the service tax demand was upheld as the appellant acknowledged liability and paid the amount. Penalty was set aside but the rest of the order was maintained. en-us Thu, 04 Jul 2024 00:00:00 +0530 Fri, 08 Nov 2024 19:58:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761300 CESTAT New Delhi held that a State-owned company liable for service tax on guarantee fees under reverse charge mechanism could not be penalized for suppression. The appellant, upon being informed of liability, paid the entire demanded amount in installments. The tribunal found no evidence of willful suppression or deliberate withholding of information, noting that government companies are presumed to act in good faith. While the extended period of limitation was wrongly invoked, the service tax demand was upheld as the appellant acknowledged liability and paid the amount. Penalty was set aside but the rest of the order was maintained. Case-Laws Service Tax Thu, 04 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761300