2016 (8) TMI 309 - AT - Service Tax

Demand of service tax from the recipient of GTA services - absence of law- law came into force subsequently - section 71 of the finance act, 1994 came into existence at a later date - Held that - when there was no law in force during relevant period to fasten liability, calling the service recipient to incur liability under law is not permissible. The appellant being recipient of service was not required by law in force during the material period to file return under the Finance Act, 1994. Section 71A of the Finance Act, 1994 having been introduced after the period covered by the show-cause notice, appellant is not liable to service tax decided in case Commissioner of Central Excise, Meerut-II Vs L.H. Sugar Factories Ltd. (2005 (7) TMI 106 - SUPREME COURT OF INDIA) - decided in favor of appellant.

Summary

The judgment states that the appellant cannot be held liable for service tax during a specific period when the relevant law was not in force. The appellant was not required to file a return under the Finance Act, 1994 during that time. As there was no notice under section 71A of the Finance Act, 1994, the appeal is allowed based on the settled law.