Section 73 service tax notice held unsustainable where the assessee's return obligation arose under section 71A.

A show cause notice issued under section 73 of the Finance Act, 1994 for service tax demand against clearing and forwarding agents was unsustainable where the return-filing obligation arose under section 71A. The Tribunal relied on L. H. Sugar Factories Ltd., which held that section 73 did not cover such assessees, and that notices issued under that provision were not maintainable. That interpretation had since been affirmed by the Supreme Court, so the impugned order was consistent with law and the Revenue's challenge failed.

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Issues: Whether the show cause notice issued under section 73 of the Finance Act, 1994 for demanding service tax from clearing and forwarding agents was maintainable.

Analysis: The demand related to the period July 16, 1997 to August 31, 1999. The order under appeal followed the Tribunal's decision in L. H. Sugar Factories Ltd., which held that section 73 did not cover persons whose return-filing obligation arose under section 71A, and that notices issued under section 73 against such assessees were not sustainable. That view had since been affirmed by the Supreme Court. In that legal position, the impugned order was in accordance with law.

Conclusion: The show cause notice was not held sustainable, and the Revenue's challenge failed.

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