Prospective scope of Section 73 barred pre-10-09-2004 notices against GTO service recipients under return-filing rules.

Recipients of goods transport operator service were liable to file returns under Section 71A, but before 10-09-2004 Section 73 of the Finance Act, 1994 did not refer to that obligation and remained confined to assessees covered by Section 70. The substitution of Section 73 was held to operate prospectively, and the provision could not be expanded by reading in words based on legislative intent. Applying the earlier L.H. Sugar Factories ruling, show cause notices issued under Section 73 before 10-09-2004 against GTO service recipients were held not maintainable, so the demand could not be sustained.

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Issues: Whether, for the period prior to 10-09-2004, show cause notices issued under Section 73 of the Finance Act, 1994 were maintainable against recipients of goods transport operator service who were liable to file returns under Section 71A.

Analysis: The liability of recipients of GTO service arose under the proviso to Section 68(1) and the return-filing obligation under Section 71A. Before the substitution of Section 73 with effect from 10-09-2004, that provision did not refer to Section 71A and was confined to assessees liable under Section 70. The later substitution of Section 73 was prospective. The judgment also rejects any construction that would add words to the statute on the basis of legislative intent, holding that the provision must be read as enacted. The earlier decision in L.H. Sugar Factories, affirmed by the Supreme Court, was treated as governing the issue.

Conclusion: The show cause notices issued prior to 10-09-2004 under Section 73 against GTO service recipients were not maintainable, and the demand could not be sustained.

Final Conclusion: The issue was decided against the Revenue and in favour of the assessees, resulting in allowance of the assessees' appeals and dismissal of the Revenue's appeals.

Ratio Decidendi: Before the prospective substitution of Section 73 of the Finance Act, 1994, recipients of GTO service liable under Section 71A were not covered by that provision, so notices issued under Section 73 against them were not legally maintainable.

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