Extended period not invocable in absence of suppression of facts with intend to evade payment of tax

Sara Leather Industries Vs Commissioner of CE & Service Tax (CESTAT Chennai)

CESTAT Chennai held that extended period of limitation not invocable as there is no suppression of facts with the intend to evade payment of tax. Accordingly, order dismissed on the grounds of limitation.

Facts- The appellants are engaged in the manufacture of export of leather footwear uppers and export the same to various foreign countries.

During the course of verification of records, it was found that the appellants were availing the services of foreign agents for procurement of orders. The appellant paid commission to the foreign agents in foreign currency for such services.

It appeared that such services provided by the foreign agents would fall under the category of Business Auxiliary Services (BAS) and the commission paid by the appellant to their foreign agents is taxable under Reverse Charge Mechanism (RCM in short) with effect from 09.07.2004.

Please become a Premium member. If you are already a Premium member, login here to access the full content.