2010 (4) TMI 503 - AT - Service Tax

Transport of goods by road services - the appellant had availed the Services of Goods Transport Operator. It was alleged that the appellant is liable for payment of service tax as per Notification Nos. 41/97-ST 42/97-ST and 43/97-ST dated 5-11-1997. It was alleged that they have contravened sections 68 69 70 and 73 of the Finance Act 1994 as they have not registered with the Service Tax Department and also they failed to file their return in Form ST-3. Service Tax demand was confirmed along with interest and the same was upheld by the lower appellate authority. for the appellant submitted that the provisions of section 73 were made applicable with effect from 26-4-2001 and the period involved is prior to that. Held that - in the light of the decision of L.H. Sugar Factories Ltd. v. CCE there was no liability on assessee to file return u/s 73 impugned order was to be set aside.

Summary

Issues:
1. Applicability of section 73 of the Finance Act for service tax demand.
2. Interpretation of liability to file return under section 71A and its impact on section 73.
3. Comparison with relevant case laws to determine liability for service tax.

Analysis:

1. The appellant appealed against the order confirming the demand of Service Tax of Rs. 60,860 under section 73 of the Finance Act. The appellant availed the services of Goods Transport Operator during a specific period, and it was alleged that they contravened various sections by not registering with the Service Tax Department and failing to file their return in Form ST-3. The lower appellate authority upheld the demand, leading to the appeal.

2. The appellant argued that the provisions of section 73 were applicable from a later date than the period in question. They contended that the demand was for a period prior to the introduction of section 71A of the Finance Act, which mandates the liability to file a return. Citing relevant case laws, the appellant emphasized that liability to file a return under section 71A excludes the applicability of section 73 for the relevant period, as section 73 pertains to cases where the assessee is liable to file a return under section 70.

3. The Tribunal considered the arguments and compared the facts of the case with the case laws presented by the appellant. The Tribunal noted that the liability to file a return was cast on the appellant only under section 71A, introduced in the Finance Bill of 2003. As the appellant was not required to file a return under section 70 prior to 2003, the Tribunal concluded that section 73 could not be invoked for non-filing of return under section 70. Relying on the decision of the Hon'ble Supreme Court in a relevant case, the Tribunal set aside the impugned order and allowed the appeal, emphasizing that there was no liability to file a return under section 73 in the instant case.

This detailed analysis of the judgment highlights the issues involved, the arguments presented by the parties, and the Tribunal's decision based on legal interpretations and relevant case laws.