2011 (9) TMI 269

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....nce: Shri Sunil Kumar, SDR  for the Appellants    Shri A.K. Batra and Shri A.K. Mishra, Advocates  for the Respondent Per Archna Wadhwa (for the Bench): Being aggrieved with the orders passed by Commissioner (Appeals) vide  which  he has set aside the demand of Service tax of Rs. 5,18,306/- from M/s. Centre Point Colour Lab and Service Tax of  Rs....

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.... Tribunal in the case of Shilpa Colour Lab vs. CCE, Calicut reported in [2007 (5) STR 423 (Tri-Bang)] as also in the case of Bharat Sanchar Nigam Ltd. vs. Union of India reported in [2006 (2) STR  161 (SC)] and Adlab vs. CCE, Bangalore reported in [2006 (2) STR 121 (Tri)]. He has accordingly set aside  the demand of duty against the respondents 4. We find that the issue on merits is n....

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..... It is seen that the said issue was the subject matter of consideration by the Government as also by the Tribunal.   Government in its circular  F.No. 233/2/2003-CX-4 dated 7.4.2004 addressed to the Punjab Colour Lab Association  had clarified that service provider was entitled to claim exemption in respect of inputs, material consumed / sold to the service recipient. Apart fr....

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....oked. It further stands observed that mere failure or negligence in not taking licence or not paying duty is not sufficient to invoke extended period. By applying the ratio  of law declared in the above decision, we find that since the earlier decisions of the Tribunal were in favour  of the assessee, it has to be held that there was bonafide doubt about the inclusion of the cost of mate....