2024 (5) TMI 74 - HC - Service Tax

Time Limitation for filing returns - revised returns filed on 14.08.2009 under Rule 7B of the Service Tax Rules 1994 are within time or not - second SCN issued on same set of facts as first SCN - Whether the Learned Tribunal has committed the gross error by not appreciating that the revised return was filed on 14.08.2003 which is beyond the stipulated period and as such the taxable value mentioned in original ST-3 returns is to be considered as correct or not? HELD THAT - The cases where the Returns are not submitted within 90 days are dealt with in Rule 7(3) which stipulates that where the return prescribed under Rule 7B is furnished after the date prescribed for submission of such return the person liable to furnish the said return shall pay to the credit of the Central Government a certain sum of money which is stipulated under said Rule considering the period of time. Therefore the ST-3 return which was filed by the assessee on 22nd May 2009 cannot be ignored by the department and the last date for filing the revised Return ought to be calculated from the said date and if the same is done revised Return filed on 14th August 2009 is well within time. It must also be noted that there is an earlier show cause notice issued to the assessee dated 8th April 2010. The said show cause notice is one of the relied upon documents in the show cause notice dated 21st September 2010 which is the subject matter of this case. Based on an audit report it was pointed out that the assessee has himself interpreted Rule 3 and 4 of the Rules. This was taken into consideration by the assessee and the assessee rectified the mistake reversed the credit which was availed and also paid the interest at the applicable rate. The aspect clearly brought out by the assessee in their response to the show cause notice vide a reply dated 27th October 2010. The contention of the assessee that the second show cause notice issued on the same set of facts which was very much available with the department when the show cause notice dated 8th April 2010 was issued would be a sufficient ground to hold that the show cause notice issued which was ultimately culminated in the Order-in-Original dated 10th February 2011 could be held to be barred by time. The learned Tribunal has taken note of the undisputed facts that too from the order-in-original as passed by the adjudicating authority and granted relief to the assessee - no questions of law much less substantial question of law arising for consideration in this appeal - Appeal dismissed.

Summary

Issues involved:
The issues involved in this case are:
1. Whether revised returns filed u/s Rule 7B of the Service Tax Rules, 1994 can be considered as within time in terms of Rule 7 of the Service Tax Rules, 1994?
2. Whether the revised return filed beyond the stipulated period should be considered correct or not?

Comprehensive Details:
1. The appellant/department issued a show cause notice to the respondent/assessee regarding the inadmissible Cenvat credit and penalty under Rule 14 of the Cenvat Credit Rules, 2004. The Commissioner confirmed a demand, imposed interest, and penalty. The assessee filed an appeal before the Tribunal, stating the duty amount had been reversed/paid. The Tribunal found that the assessee had already reversed the Cenvat credit along with interest, and the issue of the taxable service value was not before them. The Tribunal set aside the order of adjudication, leading to the revenue's appeal.

2. The main contention revolved around the timeliness of the revised return. The Department argued that the revised return filed on 14th August, 2009, was beyond the 90-day period from the original filing date of 22nd May, 2009. However, Rule 7B allows for a revised return within 90 days of the original submission. The Tribunal considered the factual position and concluded that the revised return was within time if calculated from the original filing date. Additionally, an earlier show cause notice highlighted the assessee's rectification of mistakes, which was a crucial factor in determining the timeliness of the subsequent notice.

3. The Court emphasized that the Tribunal had correctly considered the facts and relief granted to the assessee based on undisputed facts from the Order-in-Original. It was noted that no substantial question of law arose for consideration in the appeal. Consequently, the appeal was dismissed, along with the dismissal of the stay application.

This summary highlights the key legal issues, arguments presented, and the Court's decision, focusing on the timeliness of the revised return and the implications of the show cause notices on the case's outcome.