Section 73 show-cause notice was held not maintainable for GTO service tax demands covered by Supreme Court precedent.

Service tax demand on GTO services for the period 16-11-1997 to 1-6-1998 could not be sustained because the Tribunal applied Supreme Court rulings that show-cause notices under section 73 of the Finance Act, 1994 were not maintainable against assessees liable only under section 71A and not under section 70. The demand rested on the same legal footing covered by those decisions, so the revenue's challenge failed and the levy was held unsustainable.

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Issues: Whether the demand of service tax on GTO service for the relevant period could be sustained under section 73 of the Finance Act, 1994.

Analysis: The appeal concerned a service tax demand raised for the period 16-11-1997 to 1-6-1998. The Tribunal noted that the issue stood covered by the Supreme Court's earlier decisions holding that, for the class of assessees liable only under section 71A and not under section 70 of the Finance Act, 1994, show-cause notices invoking section 73 were not maintainable. As the demand was based on the same legal footing and the ratio of the Supreme Court decisions governed the controversy, the revenue's challenge could not be accepted.

Conclusion: The demand was not sustainable and the revenue's appeal failed.

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