Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2023 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 257 - ORISSA HIGH COURTTime limit for service of notice - Applicability of Section-73(4), Chapter-V of the Finance Act, 1994 - whether decision of the Commissioner of Income Tax (CIT), affirmed by the CESTAT is sustainable as it held section 73 (4) in chapter V of Finance Act 1994 to be applicable? - HELD THAT:- Sub-section (1) of section 73 provides, the authority may within 18 months from the relevant date serve notice on the person chargeable with service tax, which has not, inter alia, been paid. The proviso gives reasons that may extend the period to 5 years for notice under it being issued. The finding on fact is no notice was issued to petitioner (assessee) under sub-section (1) of section 73. However, sub-section (4) in section 73 includes reason of contravention of any of the provisions in the chapter. Regarding this, demand-cum-show cause notice dated 17th November, 2009 stood issued on petitioner, invoking the proviso to sub-section (1) in section 73. In the circumstances, by operation of sub-section (4) in section 73, provision in sub-section (3) of said section became inapplicable to petitioner. This is more so because under sub-section (1) of section 78, the requirement is for the person fixed with the liability of penalty to be that he has been served notice under proviso to sub-section (1) of section 73. The show cause notice dated 17th November, 2009 is such notice. Sub-section (1) in section 73 provides for issuance of two separate notices for distinct purposes. The first is the notice under sub-section (1), which cannot be issued on prior payment of tax and the other, under the proviso. The question in the affirmative and in favour of revenue - Appeal dismissed.
|