Case Law Details
Bikes Auto Vs C.S.T.-Service Tax – Ahmedabad (CESTAT Ahmedabad)
CESTAT find that the issue on merit is not under dispute as Larger Bench in the case of Pagaria Auto Center- 2014 (33) S.T.R. 506 (Tri.- LB) clearly held that the Commission received from the financial institution towards sale of their loan product is liable to Service Tax. Accordingly in the present case the activity of assessee for sale of loan product of financial institution is taxable.
Service Tax demand demand not sustainable if not issued was Time barred
However, the appellant have strongly submitted that the demand is time barred. In this regard, we find that there is no dispute that there were contrary judgments on the issue of taxability. Therefore, the legal position was not clear, hence it can be convenient view that being complex issue involved interpretation on the legal issue of the present case, the appellant had entertained the bona fide belief that the activity of the appellant is not liable to Service Tax. Due to contrary decisions on the issue, the Larger Bench has finally resolved the issue in Pagaria Pagariya Auto Center (supra). It is a settled law that when there are a contrary views on some legal issue and the matter is finally resolved by the Larger Bench, no doubt can be raised on the bona fide belief of the assesse for non-payment of Service Tax. In the present case the period of demand involved is 2003-04 to 2005-06, however the Show Cause Notice was issued on 23.10.2008 i.e. after almost 2 years.
5. Accordingly, in our view, the demand is not sustainable on time bar itself. Hence, the demand is set aside only on the ground of time bar.
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