Maintainability of show cause notice under service tax law failed where return filing arose under a different provision.

Section 73 of the Finance Act, 1994, as applicable to the relevant period, extended only to persons required to file returns under Section 70 and did not cover assessees governed by Section 71A. The Court therefore upheld the Tribunal's view that a show cause notice issued under Section 73 was not maintainable against such an assessee. It also clarified that the Tribunal had examined only the validity of the notice and had not determined the underlying service tax liability, which could be considered only in proceedings brought under the correct statutory provision, if permissible in law.

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Issues: Whether a show cause notice issued under Section 73 of the Finance Act, 1994 was maintainable against an assessee whose liability to file return arose under Section 71A and not under Section 70 of the Finance Act, 1994, and whether the assessee's substantive liability to pay service tax was decided in these proceedings.

Analysis: The Court followed the settled position that Section 73, as applicable to the relevant period, covered only persons liable to file returns under Section 70 and did not extend to persons governed by Section 71A. The Tribunal had therefore confined itself to the legality of the notice and had not adjudicated the underlying tax liability. The Court also noted that the question of service tax liability could be examined only in proceedings initiated under the proper statutory provision, if permissible in law.

Conclusion: The show cause notice under Section 73 was not maintainable in the facts of the case, and the Revenue's challenge to the Tribunal's order failed.

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