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2011 (3) TMI 895 - AT - Service TaxDemand for service tax - Impugned period from 16.07.1997 to 15.10.1998 - the date of amendment to the law i.e. 14.11.2004 - Show cause notice has been issued on 05.05.2008 - the precedent decision of the Tribunal in the case of Mangalam Cement Limited, (2007 -TMI - 1847 - CESTAT, NEW DELHI) - Since there were frequent amendments to the law, a view has been taken that suppression cannot be invoked and therefore, show cause notice should have been issued by the Revenue within one year from the date of amendment to the law - Decided in favour of assessee.
Issues: Demand for service tax based on amendments to relevant provisions made in 2003-2004; Time-limit for issue of show cause notice based on precedent decisions.
In this judgment by the Appellate Tribunal CESTAT, AHEMDABAD, the issue revolved around the demand for service tax for a specific period based on amendments to relevant provisions made in 2003-2004. The show cause notice in this case was issued on 05.05.2008, leading to a debate on the time-limit for issuing such notices. The learned advocate representing the respondents argued that as per the Tribunal's precedent decision in the case of Mangalam Cement Limited, the show cause notice should have been issued before 14.11.2004, one year from the date of amendment to the law. The advocate also referenced other relevant cases to support this argument. The presiding judge, Mr. B.S.V. Murthy, examined the arguments and noted that the issue at hand was squarely covered by the decisions cited by the learned advocate. Considering the frequent amendments to the law, it was established that suppression cannot be invoked, and thus, the Revenue should have issued the show cause notice within one year from the date of the law's amendment, i.e., before 14.11.2004. However, in this case, the notice was issued on 05.05.2008, well beyond the stipulated time frame. Therefore, the judge concluded that the appeal filed by the Revenue lacked merit and was subsequently rejected. This decision was made based on the precedent decisions cited by the advocate, which were deemed applicable to the facts of the case. The judgment highlights the importance of adhering to the prescribed time limits for issuing show cause notices in tax-related matters, as established through legal precedents and interpretations of relevant laws.
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