Service tax liability on goods transport operator recipients cannot be created retrospectively by a later return-filing provision.

Service tax could not be recovered from the recipient of goods transport operator service for a period when the statute did not impose such liability on that class of persons. Section 71A, which introduced a return-filing obligation, did not retrospectively expand liability under section 73 of the Finance Act, 1994. The show cause notice and revisional demand were therefore not maintainable, and the related interest demand under section 75 also failed.

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Issues: Whether service tax demand on the recipient of goods transport operator service for the relevant period was sustainable under section 73 of the Finance Act, 1994 in light of section 71A of the Finance Act, 1994.

Analysis: The demand related to a period when recipients of goods transport operator service were not directly liable to service tax under the then prevailing scheme. Section 71A, subsequently inserted, created a return-filing obligation, but did not expand the class of persons against whom service tax could be recovered under section 73. Following the binding view already accepted on the point, the demand made by revisional order could not be sustained, and the consequential interest demand under section 75 also fell with it.

Conclusion: The demand under section 73 was not maintainable against the assessee, and the impugned order was set aside in favour of the assessee.

Ratio Decidendi: A show cause notice under section 73 of the Finance Act, 1994 is not maintainable for recovering service tax from a recipient of goods transport operator service for a period when the statute did not impose such liability, and a later return-filing provision under section 71A does not retrospectively create that liability.

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