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2008 (1) TMI 275 - AT - Service TaxGoods Transport Operators Service (GTO service) availed during the period from 16.11.1997 to 1.6.1998 demand u/s 73 & penalty for nonpayment of tax - held that a person receiving taxable service from GTO/C&F Agent was not covered by provisions of Sec. 70 & 73 - class of persons who come under Section 71A is not brought under the net of Section 73 - SCN issued to the appellants invoking Section 73 are not maintainable
Issues:
Interpretation of Sections 68, 71A, 73 of the Finance Act-94 regarding demand of service tax for Goods Transport Operator's (GTO) service availed by M/s. Pioneer Press Pvt. Ltd. (PPPL). Analysis: The appeal by PPPL pertained to the waiver of predeposit of Service Tax amount and stay of recovery till appeal disposal. PPPL had availed GTO service but had not paid the due tax. The jurisdictional Commissioner initially dropped the proposal to demand service tax, citing Section 71A of the Act. However, in revision, the Commissioner reversed the decision based on a subsequent appeal and interpretation of Sections 68, 71A, and 73. The Commissioner confirmed the demand of Rs. 15,930/- under Section 73 read with erstwhile Section 71A. The appeal argued that the issue was settled by the Supreme Court's judgment in a similar case. PPPL did not appear for the hearing, and the findings were reiterated by the SDR. Upon examination, the Tribunal referred to the Apex Court's judgment in a similar case, which highlighted that Section 73 only applies to assesses liable to file returns under Section 70, not under Section 71A. As PPPL fell under Section 71A, the demand under Section 73 was deemed not maintainable. The Tribunal concluded that the impugned order was inconsistent with the Supreme Court's decision, thus allowing the appeal filed by PPPL. The service tax demand invoking Section 73 from persons availing GTO service was deemed unsustainable based on the Apex Court's ruling. This judgment clarifies the interpretation of Sections 68, 71A, and 73 of the Finance Act-94 in the context of demanding service tax for GTO service availed by PPPL. The Tribunal's decision was based on aligning the demand provisions with the specific sections governing the liability to file returns, as established by the Supreme Court's precedent.
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