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2019 (7) TMI 654 - AT - Service TaxWorks Contract Services - Composition rules - non-discharge of service tax - period October 2007 to November 2010 - time limitation - HELD THAT:- Undisputedly the SCN was issued on 25 June 2014. In terms of the provisions of section 73 of the Finance Act, 1994, Revenue can raise the demand for the maximum period of five years from the date of issuance of show cause notice - the period prior to five years from the date of the show cause notice cannot be re-opened by the Revenue and the demand for the said period is liable to be set aside on this ground. Admittedly the composition rules are applicable on an option exercised by the assessee. Such an option was exercised by the appellant only w.e.f. December 2010 onwards. In the absence of any option having been exercised for the period in question, the applicability of the composition rules cannot be upheld. As such the demand has to be quantified in terms of the provisions of Rule 2A of Service Tax Valuation Rules, by taking into account the VAT assessment orders. Matter remanded to the adjudicating authority for fresh quantification of the demand against the appellant for the period falling within five years from the date of show cause notice.
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