2017 (7) TMI 719

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....ticed by the department that they deducted the cost of papers and chemicals consumed from the total taxable value, while paying tax on their output services. A show-cause notice was issued for different periods alleging willful suppression of the value of taxable services by misusing the benefit of Notification No.12/2003 dated 20.06.2003. The period involved, the amount involved etc., are shown in the table given below:- SI. No Appeal No. Appellant / Respondent Period of dispute Amount (in Rs.) (1) (2) (3) (4) (5) 01 S/199/06 K.R. Shanthi Vs. CCE Tiruchirapalli July, to '03 to Set. '04 1,17,533 02 S/201/06 K.R. Karuppaiah Vs. Vs. CCE & ST, Tiruchirapalli -do- 1,56,763 03 S/2....

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....ettled in the case of Aggarwal Colour Advance Photo System Vs Commissioner of Central Excise, Bhopal reported in 2011 (23) S.T.R. 608 (Tri.-LB). The appellant has availed the benefit of notification which they are not eligible and, therefore, it amounts to willful suppression of facts with intent to evade tax. 6. We have heard the submissions made by both sides. 7. The issue whether the appellant is eligible to deduct the cost of papers and chemicals/materials from the taxable value of services is settled by the Larger Bench judgment in the case of Aggarwal Colour Advance Photo System (supra) as submitted by the learned Authorised Representative. The relevant paragraphs are reproduced as under:- "Hence, our answers to the two....

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....Tri. -Del.). 9. Following the above judgments, we find that on merits the issue stands covered in favour of Revenue. 10. The learned counsel has argued on the ground of limitation also. The show-cause notice has been issued invoking extended period of limitation. In the show-cause notice, there are no specific allegations as to the fact of wilfull suppression on the part of the appellant. On bare perusal of the show-cause notice as well as the records placed before us, we are able to say that except for a vague statement that the appellant has willfully evaded payment of service tax by availing the benefit of notification, there is no evidence to establish that the appellant has intentionally evaded payment of service tax. The appella....