Order Date – 10 April 2023

Parties: M/s. Central Registry of Securitisation, Asset Reconstruction and Security Interest of India (CERSAI) Vs Principal Commissioner CGST, South, Delhi

Facts – 

• The Appellant, M/s. Central Registry of Securitisation, Asset Reconstruction and Security Interest of India (CERSAI), a company incorporated under section 8 of the Companies Act.
• A show cause dated 26.08.2015 was issued alleging that appellant had failed to pay service tax in respect services to the banks, financial institutions, NBFCs, etc. by providing the platform for filing registration of transactions of securitization, asset reconstruction and security interest, which falls under the categories of “BSS‟ and “OIDARS‟. 
• It was further alleged that the appellant had intentionally and wilfully suppressed the fact of provision of such taxable services by it from the department, the extended period of limitation was invokable.

Issue – 

• Whether the extended period of limitation is invokable? Whether the demand of service tax is in order ?

Order – 

• The Tribunal observed that the appellant is a government company and, therefore, there is a rebuttable presumption regarding non-existence of any of the ingredients mentioned in the proviso to section 73(1) of the Finance Act. The show cause notice does not rebut the presumption. In such circumstances, the extended period of limitation could not have been invoked. As the entire demand that has been confirmed is for the extended period of limitation, it was held that the order confirming the demand cannot be sustained.
• It was further observed that service tax on the fees received from banks/financial institutions for registration of transactions has confirmed the demand of service tax under BSS and OIDARS. It was held that the show cause notice is required to indicate which particular category of service was intended to be taxed for the requirement of section 65A of the Act.
• Hence the impugned order cannot be sustained and is set aside. The appeal is, accordingly, allowed.

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