2008 (7) TMI 149 - AT - Service Tax

Appeal success: Service tax order overturned due to procedural errors

AMARAVATHI CO-OP. SUGAR MILLS LTD. Versus COMMR. OF C. EX., COIMBATORE

AMARAVATHI CO-OP. SUGAR MILLS LTD. Versus COMMR. OF C. EX., COIMBATORE - 2008 (12) S.T.R. 381 (Tri. - Chennai), [2009] 18 STT 49 (CHENNAI - CESTAT) Issues:1. Interpretation of liability to pay service tax on Goods Transport Operators Service.2. Validity of invoking larger period under Section 73 of the Act.3. Compliance with the ratio of the apex court's judgment.Analysis:1. The appeal challenged an Order-in-Revision by the Commissioner demanding service tax, interest, and penalty from the appellants for the period 16-11-97 to 2-6-98. The original authority dropped proceedings stating the appellants were not liable to pay service tax on Goods Transport Operators Service, as the cane growers were responsible. The Commissioner disagreed, citing a judgment that persons required to file returns under Section 71A were covered by Section 73(1)(A) of the Act. The Commissioner held the appellants liable as they bore the freight cost, leading to the impugned order.2. The consultant contended that the show-cause notice did not invoke the larger period under Section 73, and the revisional order should not have used a provision not in the notice. The consultant argued the order contradicted the apex court's judgment. The Commissioner's decision to confirm the demand for a larger period was deemed beyond the show-cause notice's scope, rendering the impugned order unsustainable.3. After careful consideration, the Member found the Commissioner's order contrary to the apex court's judgment and the invocation of the larger period improper. Consequently, the Commissioner's order was vacated, and the appeal was allowed, emphasizing the unsustainability of the impugned order in light of the legal principles and procedural fairness outlined in the judgment.