Assessee not paying service tax on the gross amount received and were under reporting the valued of the taxable service in their ST-3 returns - demand confirmed invoking extended period of limitation - Tri - Service Tax
August, 16th 2014
Service Taxof the learned Jt. CDR and have gone through the records of this case. 4. The appellant provide CandF agent's service and the point of dispute is as to whether certain expenses reimbursed to them by their principal are includible in their assessable value or not. This issue stands decided against the appellant by the Larger Bench of the Tribunal vide its judgment in the case of Sri Bhagavathy Traders vs. CCE, Cochin (supra).
In view of this, the service tax was payable by the appellant on the gross amount of remuneration received by from their principals on the basis of the quantity of cement handled. Looking to the circumstances of the case, we find that extended limitation period has been correctly invoked and for the same reason, the penalty on them under Section 78 of the Finance Act, 1994 has been correctly imposed. In view of this, we do not find any infirmity in the impugned order. The appeal is dismissed. (Operative part of the order pronounced in the open court)