2017 (9) TMI 1557 - AT - Service Tax

GTO service - failure to collect and deposit tax - Held that - the demand was not quantified in the Show Cause Notice as well as in the Adjudication order and therefore, the proceedings cannot stand - appeal dismissed - decided against Revenue.

Summary

Issues:
Failure to collect and deposit Service Tax, failure to register with Service Tax authorities, non-filing of return under Section 70 of the Finance Act, 1994, limitation period for Show Cause Notice, quantification of duty in demand notice.

Analysis:
The case involved the respondents engaged in the manufacture of Vegetable Oil facing a Show Cause Notice for alleged failure to collect and deposit Service Tax for a specific period and non-compliance with registration and return filing requirements. The Adjudicating Authority confirmed the demand, but the Commissioner (Appeals) set it aside on the grounds of limitation. The Revenue contended that the extended period for the Show Cause Notice had expired, and the duty was not quantified, rendering the demand untenable.

The Commissioner (Appeals) found the Show Cause Notice issued in 2003 to be time-barred due to the material period being 16.11.1997 to 01.06.1998, with the duty not quantified. The Commissioner emphasized the necessity of quantifying duty for a demand notice to hold merit, citing the appellant's non-compliance with providing required data despite departmental correspondences. The Tribunal's decision and the absence of duty quantification in the Show Cause Notice and Adjudication order led to the dismissal of the Revenue's appeal.

The Tribunal concurred with the Commissioner (Appeals) that the demand notice lacking duty quantification was unsustainable in law. The failure to quantify the demand rendered the proceedings invalid, resulting in the dismissal of the Revenue's appeal. The decision highlighted the importance of complying with legal provisions and the necessity of quantifying duty in demand notices for them to hold legal standing.

In conclusion, the judgment upheld the Commissioner (Appeals) decision to set aside the Adjudication order based on the time-barred Show Cause Notice and the lack of duty quantification. The appeal filed by the Revenue was dismissed, emphasizing the legal requirement of quantifying duty in demand notices and the consequences of non-compliance with statutory obligations.