2012 (9) TMI 236

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....9 [2010 (17) S.T.R. 420 (Tribunal)]. 2. M/s. Indian Institute of Chemical Technology (IICT), Hyderabad, is a constituent research and consultation laboratory under the over all administrative control of the Council of Scientific & Industrial Research (CSIR), Government of India. As per Sections 65(92) and 105(za) of the Finance Act, 1994 (the Act), "Scientific and Technical Consultancy Service" is liable to service tax at the applicable rate. The Officers of the Director General of Central Excise Intelligence Unit (DGCEI), gathered intelligence and found that for the period from 16-7-2001 to 9-9-2004 IICT did not pay the service tax. Therefore, the Commissioner of Customs and Central Excise, Hyderabad-III Commissionerate, issued a s....

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.... an excuse for non-payment of service tax from the date of levy as IICT was registered independently with the Central Excise Department on 1-3-2002. Insofar as the penalty aspect is concerned, relying on Section 80 of the Act, the Commissioner came to the conclusion that there was a bona fide doubt regarding the activity covered by the Act and the activity exempted from the Act from payment of service tax, and therefore, it is not a case for imposing penalty. Being aggrieved, IICT as well as the Revenue preferred appeals. By a common order, the appeal of IICT was allowed and the other was dismissed, aggrieved by which, the two present appeals are filed. 5. The Senior Standing Counsel for Central Excise and Customs would submit that ....

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....mpetent Central Excise Officers can serve a notice on the person chargeable requiring him to show cause as to why he should not pay the amount. In this case, the proceedings were initiated with the issue of show cause notice dated 21-2-2006 requiring IICT to pay the service tax for the period from 16-7-2001 to 9-9-2004. As per sub-section (1) of Section 73 of the Act the period of one year would expire by September 2005. Therefore, the proceedings are clearly beyond the period of limitation. When the Commissioner found that the non-payment of service tax in respect of five above named projects is due to bona fide doubt regarding the activity, the non-payment, in our considered opinion, and as rightly found by the CESTAT, does not fall withi....