Service tax recovery cannot exceed the show-cause notice or expand Section 73 beyond Section 71A liability.

Service tax recovery for Goods Transport Operators Service could not be expanded under Section 73 merely because the recipients were liable to file returns under Section 71A; the reasoning contrary to the Supreme Court-linked position relied on by the assessee was rejected. The demand also failed because the revisional authority invoked the extended limitation period on a ground not proposed in the show-cause notice, and a demand cannot be sustained on a basis outside the notice. The revisional order was therefore set aside, and the service tax demand, interest, and penalty did not survive.

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Issues: (i) Whether persons liable to file returns under Section 71A could be brought within the ambit of Section 73 for recovery of service tax on Goods Transport Operators Service; (ii) Whether the demand could be sustained when the revisional authority invoked the larger period beyond the scope of the show-cause notice.

Issue (i): Whether persons liable to file returns under Section 71A could be brought within the ambit of Section 73 for recovery of service tax on Goods Transport Operators Service.

Analysis: The impugned order proceeded on the view that the liability to file a return under Section 71A also attracted recovery under Section 73. The order was found to be contrary to the ratio of the Supreme Court decision relied upon by the appellant, and the reasoning adopted by the Commissioner was rejected.

Conclusion: The issue was decided in favour of the assessee and against the Revenue.

Issue (ii): Whether the demand could be sustained when the revisional authority invoked the larger period beyond the scope of the show-cause notice.

Analysis: The show-cause notice did not propose invocation of the larger period, yet the revisional order relied on that ground to confirm the demand. Since the demand was affirmed on a basis not found in the notice, the order was held to be unsustainable.

Conclusion: The issue was decided in favour of the assessee and against the Revenue.

Final Conclusion: The revisional order was set aside and the service tax demand, interest, and penalty did not survive.

Ratio Decidendi: A demand cannot be sustained by invoking an extended period or a ground not set out in the show-cause notice, and recovery under Section 73 cannot be enlarged beyond the scope of the statutory liability recognized for the relevant service recipients under Section 71A.

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