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2013 (10) TMI 1322 - HC - Service TaxGoods Transport Agency - Validity of Show Cause Notice - Held that - Section 71A of the Finance Bill 2003 received the President assent on 14-5-2003 and accordingly for utilising the services the service recipients have to file the return in respect of service tax for the respective period and service specified therein to the Central Excise Officer within six months from the day on which the Finance Bill 2003 received the assent of the President viz. on 14-5-2003. Therefore the last date for filing the return for the assessees for utilising the Goods Transport Operators viz. the service recipients under Section 71A of the Finance Act 1994 falls on 12-11-2003. - As per the Finance Act 2004 Section 73(1)(a) of the Finance Act was amended with effect from 10-9-2004 validating the notice issued to Goods Transport Operators Service recipients by removing the clause the persons liable to file the returns under Section 70 from erstwhile Section 73 of the Finance Act. - very initiation of proceedings by issuance of show cause notice is bad in law. Accordingly the order passed by the Customs Excise and Service Tax Appellate Tribunal is justified. There is no ground to interfere with the order. - Decided against Revenue.
Issues:
Appeal against order passed by Customs, Excise and Service Tax Appellate Tribunal; Dispute over tax liability based on previous decisions; Validity of show cause notices issued by the Department; Interpretation of Sections 71A, 68(1), and 73(1)(a) of the Finance Act, 1994. Analysis: The appeals were filed by the Revenue challenging the order passed by the Customs, Excise and Service Tax Appellate Tribunal regarding service tax non-payment by private respondents who availed services of Goods Transport Agency. The Department issued show cause notices demanding service tax for the period from 16-11-1997 to 1-6-1998. The assessees filed replies, and the original authority confirmed the demand and imposed penalties. The assessees then appealed to the First Appellate Authority, who upheld the order. Subsequently, the assessees approached the Tribunal, which referred to previous decisions confirming the tax liability in favor of the assessees. The Tribunal noted that the Department's appeal against the previous judgment was dismissed by the Supreme Court, settling the issue in favor of the assessees. The Department challenged the Tribunal's orders by raising questions of law related to the interpretation of Sections 71A, 68(1), and 73(1)(a) of the Finance Act, 1994. The Court considered the provisions of Section 71A, which required service recipients to file returns for service tax within six months of the Finance Bill's assent in 2003. Additionally, the Court discussed the amendment to Section 73(1)(a) of the Finance Act in 2004, validating show cause notices issued to Goods Transport Operators service recipients. The Department argued that show cause notices issued between specific dates were valid, but the Court found that the initiation of proceedings based on the show cause notices was legally flawed. In light of the legal position and the invalidity of the show cause notices, the Court upheld the order passed by the Customs, Excise and Service Tax Appellate Tribunal, dismissing the Civil Miscellaneous Appeals filed by the Department. The Court found no grounds to interfere with the Tribunal's decision, and no costs were awarded in the case.
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