2018 (7) TMI 1283 - AT - Service Tax

Validity of SCN - the SCN did not point out the activity undertaken by the appellant and also did not establish how such activity was classifiable under Repair and Maintenance Service - Held that - It was responsibility of revenue to first deliberate on the fact about the activity undertaken by the appellant and examine how the said activity was taxable and where it was classifiable. Such vital aspects are missing in the show cause notice. Therefore, the said show cause notice dated 05.03.2010 is not sustainable - appeal allowed.

Summary

Issues: Show cause notice validity; Classification under Repair and Maintenance Service; Appeal against demand of service tax and penalty.

The Appellate Tribunal CESTAT ALLAHABAD addressed the issue of the validity of a show cause notice dated 05.03.2010 issued to the appellant, leading to the confirmation of a demand for service tax and penalty. The Tribunal noted that the notice failed to specify the activity undertaken by the appellant and did not establish how it was classifiable under Repair and Maintenance Service. The Tribunal criticized the Revenue for presuming the appellant provided taxable service without proper examination and classification. The Tribunal deemed the show cause notice as unsustainable due to these deficiencies, ultimately setting aside the impugned Order-in-Appeal and allowing the appellant's appeal.

The Tribunal emphasized the importance of the Revenue's responsibility to deliberate on the activity undertaken by the appellant and determine its taxability and classification before issuing a show cause notice. By failing to address these crucial aspects in the notice, the Revenue's actions were deemed inadequate and unsustainable. Consequently, the Tribunal ruled in favor of the appellant, directing the Revenue to provide consequential relief within 90 days from the date of the order.

In conclusion, the Appellate Tribunal CESTAT ALLAHABAD allowed the appeal filed by the appellant, highlighting the deficiencies in the show cause notice and the lack of proper examination by the Revenue regarding the classification under Repair and Maintenance Service. The Tribunal's decision to set aside the Order-in-Appeal and provide relief to the appellant underscored the importance of due process and proper examination in tax-related matters.