Limitation barred service tax demands for GTA recipient liability; later High Court rulings prevailed over contrary Tribunal precedent.

Service tax demands issued in 2004 for the earlier period relating to recipient liability for GTA services were found unsustainable because later High Court rulings held such demands barred by limitation. Although a Larger Bench view of the Tribunal had supported notices issued after the retrospective amendment, the later High Court decisions were followed on the principle that High Court rulings prevail over a contrary Tribunal view. The demands were therefore held not maintainable and were set aside in favour of the assessee.

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Issues: Whether the service tax demands issued in 2004 for the period 1997-1998, relating to recipient liability for GTA services, were sustainable in view of the retrospective amendments and the limitation issue.

Analysis: The demand arose from show cause notices issued after the 2004 amendment to the service tax provisions. The Tribunal noted that although a Larger Bench had upheld the sustainability of notices issued after the amendment, later High Court decisions had held that demands raised in 2004 for the earlier period were barred by limitation. It applied the principle that decisions of High Courts prevail over a contrary Larger Bench view of the Tribunal and followed those High Court rulings.

Conclusion: The demands were held not maintainable and were set aside, in favour of the assessee.

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