TaxTMI 
TaxTMI 
2025 (5) TMI 1827
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....aid order are that the appellant is holder of service tax registration for providing service under supply of tangible goods and other taxable services. Pursuant to the letter dated 06.10.2017 received from M/s Shri Modi Levigated Kaolin Pvt. Ltd., the provider of service to said Shri Modi, the present appellant, was asked to furnish certain documents in respect of services rendered by them. Documents like income tax returns, balance sheet, copies of contract, copies of Form 16A and 26AS alongwith ST3 returns. These documents were submitted by the appellants on 02.11.2017 along with the audited accounts reports for the financial year 2012-13 to 2015-16. 3. From the examination of the documents, department observed that the appellant had s....
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....rtered accountants for the appellant and Shri Anuj Kumar Neeraj, the authorized representative for the department. 6. Ld. Counsel for the appellant has submitted that service tax is demanded based on following two allegations : 1. The appellant has rendered the 'Supply of Tangible Goods Service' during financial year 2012-13 to 2015-16 but has not paid the service tax 2. The appellant has received 'Rent-a-Cab' service but the liability of service tax payment under reverse charge mechanism has not being discharged 7. It is mentioned that the service recipient is engaged in the business of mining minerals. The Appellant had been giving the machinery on hiring basis to its clients/ service recipients and is receiving hi....
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.... 10. As regard the invocation of extended period of limitation while issuing show cause notice and imposition of penalty it is submitted that the appellant did not take registration nor did it pay service tax for the amount received for giving the vehicles on hire because of the bonafide belief that the activity is not taxable. The moment the appellant became aware about its liability, immediately the appellant got itself registered and discharged entire the service tax liability viz-a-viz the activity of giving vehicle on hire under the head of 'Supply of Tangible Goods Service'. The payment was made much prior to the issuance of show cause notice hence there is neither suppression of facts on the part of the appellant nor it is the cas....
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....-Section 11AC of Central Excise Act 1944. The appeal is accordingly prayed to be dismissed." 14. After hearing both the parties, the rival contentions, I observe it to be an admitted fact that the entire service tax liability, for the period in dispute, with respect to giving machinery on hire i.e. with respect to 'Supply of Tangible Goods Service' stands paid/ discharged by the appellant alongwith the interest on 07.06.2017. It is clear that the amount of tax demand in dispute, for the said service, was paid by the appellant much prior the issuance of impugned show cause notice except that a meager amount of Rs. 22,177/- along with the interest of Rs. 17300 was paid on 22.02.2018 however prior the issuance of the Order-in-Original. Stat....
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....provision of law that mere omission cannot be called as an act of suppression. 17. In the light of this entire discussion and the Show Cause Notice itself being barred by time the demand confirmed in the name of rent-a-cab service also gets hit by the period of limitation. Otherwise also the demand is not sustainable on the merits. The taxable service is defined under section 65 B 44 of Finance Act, 1994/2012 as follows:- "Service means any ACTIVITY carried out by a person for another for CONSIDERATION, and includes a DECLARED SERVICE, but shall not include; (a) An activity which constitutes MERELY, 1. A transfer of title in GOODS or IMMOVABLE PROPERTY, by way of sale, gift or in any other manner; or 2. A transaction in money....