2008 (2) TMI 116 - AT - Service Tax

In the present case show-cause notice was issued by the Supdt. of Central Excise cpmm. (A) held that Deputy Commissioner of Central Excise is the proper officer to issue the notice for recovery of tax u/s 73 Comm. (A) didn t consider amended provision which were amended w.e.f. 13.5.05, according to which all Central Excise Officers are authorized to issue notice - impugned order is set aside and the matter is remanded to the Commissioner (Appeals)

Summary

Issues: Proper officer to issue notice for recovery of Service Tax under Section 73 of Finance Act.

In this judgment by the Appellate Tribunal CESTAT, New Delhi, the Revenue appealed against an order where the Commissioner (Appeals) set aside an adjudication order due to the show-cause notice being issued by a Supdt. of Central Excise instead of an Assistant Commissioner or Deputy Commissioner as per Section 73 of the Finance Act. The Revenue argued that the Finance Act of 2005 empowered Central Excise officers to issue such notices for Service Tax. The Tribunal noted that the Finance Act was indeed amended in 2005, authorizing Central Excise officers to issue recovery notices for Service Tax. As the show-cause notice in this case was issued after the amendment, the impugned order was set aside, and the matter was remanded to the Commissioner (Appeals) for a fresh decision after providing an opportunity of hearing to the respondent. The appeal was disposed of by way of remand.

This judgment clarifies the proper authority empowered to issue notices for the recovery of Service Tax under Section 73 of the Finance Act. It highlights the significance of considering amendments to relevant laws in adjudicating such matters and emphasizes the importance of following the updated provisions to ensure legal compliance and procedural correctness in tax recovery cases.