2010 (8) TMI 1020 - AT - Service Tax

Summary

Issues involved: Confirmation of duty demand and penalty u/s Goods Transport Agency services, limitation period for issuance of show cause notice.

The judgment by Appellate Tribunal CESTAT AHMEDABAD involved the confirmation of duty demand and penalty u/s Goods Transport Agency services. The lower authorities had confirmed a duty demand of Rs. 47,136/- and imposed a penalty of the same amount on the appellants for availing services from various Goods Transport Operators without paying service tax. The show cause notice was issued on 11.5.2007 for the period 16.11.1997 to 02.6.1998.

The appellant contended that the notice issued on 11.5.2007 for the period 11/1997 was time-barred. Citing various Tribunal decisions and the Larger Bench judgment in the case of CCE Meerut-II vs. L.H. Sugar Factories Limited, upheld by the Hon'ble Supreme Court, the appellant argued for the limitation period.

After hearing the arguments, the Tribunal found that the issue was settled by various decisions, including CCE Jaipur vs. Milap Marbles Pvt. Limited, CCE Indore vs. Kashyap Sweetners P. Ltd., M/s. Shah Alloys & Orthers vs. CCE Ah'bad, CCE Vdr vs. Welspun Gujarat Stahl Rohern Ltd, and M/s. Gujarat Flurochemicals Ltd. vs. CCE Vdr. The Tribunal emphasized that notices must be issued within the limitation period as per the retrospective amendment of law u/s Section 117 of Finance Act, 2000. As the notice in this case was issued in May 2007, well beyond the normal limitation period, it was held to be barred by limitation. Consequently, the appeal was allowed in favor of the appellants.