2024 (5) TMI 1565 - AT - Service Tax

Demand of service tax along with interest and Penalty - membership fees under Club Association Service and amounts paid under reverse charge for Transport of Goods by Road Service and Rent a Cab Service - Provisions relating to negative list regime - show cause notice issued as per the old provisions of the Act - HELD THAT - We find that the SCN itself was issued without citing any relevant provisions. Therefore the impugned order confirming the demand as per the SCN under various non-existing legal provisions cannot be sustained. The impugned order is set aside and the appeal is allowed with consequential relief to the appellant.

Summary

The Appellate Tribunal (CESTAT New Delhi) in the appeal filed by M/s Bharat Swabhiman (Nyas) against the Commissioner, Dehradun's order dated 02.01.2019, addressed the demand of service tax of Rs. 5,38,56,091/- under section 73, interest under section 75, and penalty under section 76 of the Finance Act, 1994. The tax demand related to membership fees under "Club & Association Service" and amounts paid under reverse charge for "Transport of Goods by Road Service" and "Rent a Cab Service" for the period April 2015 to June 2017.The appellant contended that the show cause notice (SCN) invoked obsolete provisions-clauses of section 65(105)-which ceased to exist post 1 July 2012, when the negative list regime was introduced. The Revenue conceded that during the relevant period, the negative list regime was operative and the earlier provisions cited in the SCN were no longer applicable.The Tribunal held that the SCN was issued without reference to any relevant legal provisions operative during the period in question. Consequently, the impugned order confirming the demand "as per the SCN under various non-existing legal provisions cannot be sustained." The appeal was allowed, and the impugned order was set aside.