Service tax notices on Goods Transport Agency services were invalid because they preceded the statutory initiation window and could not be cured later.

Show cause notices for service tax on Goods Transport Agency services were held invalid because they were issued before the statutory window for initiation had opened under the relevant provisions. The later validating amendment to Section 73(1)(a) of the Finance Act, 1994 did not cure notices already issued outside the permissible period. The earlier appellate and tribunal view was therefore affirmed in substance, and the Revenue's challenge failed, leaving the demand unsustainable in law.

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Issues: Whether the show cause notices issued for service tax on Goods Transport Agency services for the relevant period were valid in law in view of Sections 71A, 68(1) and 73(1)(a) of the Finance Act, 1994.

Analysis: The notices in the cases were issued before the validating amendment relied on by the Revenue and before the period within which returns could be filed under Section 71A expired. The later amendment to Section 73(1)(a) could not cure the defect in notices already issued outside the legally permissible window. The earlier appellate and tribunal view holding the demand unsustainable was therefore correct.

Conclusion: The show cause notices were bad in law and the challenge by the Revenue failed; the decision was in favour of the assessee.

Ratio Decidendi: A demand for service tax cannot be sustained on the basis of a show cause notice issued before the statutory framework permitted such initiation, and a subsequent validating amendment does not automatically cure that defect.

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