Case Law Details
Namakkal Agricultural Producers Co-Operative Marketing Society Vs Commissioner of Central Excise (CESTAT Chennai)
CESTAT Chennai held that non-payment of service tax under GTA by assessee (Co-operative Society) was due to bonafide belief and there was no deliberate intention for not paying tax. Accordingly, extended period of limitation not invocable.
Facts- M/s. Namakkal Agricultural Producers Co-Operative Marketing Society, the appellant herein is a society formed by Agriculturists and as the name suggests is registered as a Co-operative Society under the Tamil Nadu Co-operative Societies Act, 1983.
The contention of the Department is that the society is engaged in conducting auction of goods for monetary consideration, collecting appraising charges for sanction of jewel loans to its members and also making payment of freight for transport of goods. As the society is involved in rendering taxable services for consideration falling under (i) Auctioneer’s service, ii) GTA service and iii) Business Support Service of the Finance Act, 1994, without obtaining registration, without payment of appropriate service tax and without filing ST-3 returns as mandated.
Accordingly, a Show Cause Notice demanding service tax under Auctioneer’s Service, BSS and GTA service invoking extended period, apart from demanding interest u/s. 75 of the Finance Act, 1994 and proposing levy of penalties u/s. 76, 77 and 78 of the Finance Act, 1994 was issued to the appellants and also proposing penal action for non-payment of tax and for contravention of various provisions of the Finance Act, 1994, for the period from April, 2011 to June, 2012.
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