Appeal allowed, order set aside, case remanded for limitation issue.

The appeal was allowed, and the impugned order confirming the service tax demand, interest, and penalty was set aside. The case was remanded for the Commissioner (Appeals) to address the limitation issue raised by the appellant regarding the time-barred show cause notice. If the appellant succeeded on the limitation issue, the merits of the case would not be considered; however, if the limitation issue failed, the Commissioner (Appeals) would proceed to evaluate all merits of the case.

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Issues:
1. Bar on limitation of show cause notice for service tax demand.
2. Merits of the case regarding service tax payment.

Analysis:
1. The appeal was filed against the order confirming the service tax demand, interest, and penalty. The appellant contended that the show cause notice was time-barred. The appellant filed their service tax return for a specific period on 24-10-2003. Subsequently, they received a query from the department regarding the amount paid, which was clarified by the appellant on 4th February 2004. The service tax amount was paid on 22nd March 2004. However, a show cause notice was issued on 4-10-2006 for a different period. The appellant argued that the notice was beyond the statutory period of one year, as the duty for the disputed period had already been paid and queried earlier.

2. The advocate emphasized that the department was aware on 24-10-2003 that the duty for the disputed period had not been paid, and the payment was made on 22nd March 2004. The show cause notice issued on 4-10-2006 was considered beyond the extended statutory period. The judgment highlighted that the Commissioner (Appeals) did not address the limitation contention raised by the appellant. Therefore, the matter was remanded back to the Commissioner (Appeals) to decide on the limitation issue. If the appellant succeeded on the limitation issue, the merits of the case would not be addressed. However, if the appellant failed on the limitation issue, then the Commissioner (Appeals) would proceed to consider all merits of the case.

In conclusion, the impugned order was set aside, and the appeal was allowed by way of remand for the Commissioner (Appeals) to first determine the limitation issue.

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