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Issues involved: Interpretation of service tax liability u/s Chapter V of the Finance Act, 1994 based on a show cause notice, classification of services provided under a composite contract, absence of clear attributions/allegations in the notice, validity of the notice for vagueness, need for a fresh show cause notice invoking extended period.
Interpretation of service tax liability: The Additional Commissioner confirmed service tax liability of Rs. 9,10,838/- on the appellant for providing cargo handling, cleaning, and other services mentioned in Chapter V of the Finance Act, 1994. The appellant's appeal before the Commissioner (Appeals) was rejected. Classification of services under composite contract: The appellate authority considered an agreement between the appellant and M/s. Cattle Feed Factory, categorizing the services into "cargo handling", "manpower recruitment or supply agency", and "cleaning activity" services. The agreement was deemed a composite one where the appellant agreed to provide a range of services, including "manpower recruitment or supply agency" and "cleaning activity". Validity of the show cause notice: The show cause notice dated 3-5-2011 was criticized for its vagueness and lack of clear attributions/allegations regarding the taxable services provided by the appellant. Neither the adjudicating authority nor the Commissioner (Appeals) identified the predominant nature of the taxable service under the composite contract. Need for a fresh show cause notice: Due to the vagueness of the initial notice, it was deemed unsustainable. The judgment suggested that a fresh show cause notice invoking the extended period might be necessary for part of the period in question. The show cause notice dated 3-5-2011 and the subsequent adjudication order were quashed, allowing the appellate authority to issue a new notice in accordance with the law.
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