Return-filing obligation under service tax law cannot be applied retrospectively to sustain a notice against a service recipient.

Section 73 was applied only to persons liable to file returns under Section 70 during the relevant period, so proceedings against a service recipient were not maintainable where no return-filing obligation existed at that time. The later introduction of Section 71A created that obligation prospectively and did not retrospectively validate earlier show cause notices or demands. On that basis, the demand of service tax and interest was treated as unsustainable and the order confirming it was set aside in favour of the assessee.

---

---

Issues: Whether the show cause notice and consequent demand of service tax under Section 73 were sustainable for the relevant period when the service recipient was not required to file a return under Section 70 and the liability to file return under Section 71A had not been brought into force.

Analysis: The Tribunal followed the settled position that Section 73, during the relevant period, applied only to persons liable to file returns under Section 70. The liability of the service recipient to file a return was introduced only under Section 71A, and prior to that introduction, proceedings under Section 73 for non-filing of return by such recipients were not maintainable. The earlier decision in the identical dispute was followed, and the impugned revisionary order confirming demand of service tax and interest was found unsustainable.

Conclusion: The demand was held not maintainable and the order confirming service tax and interest was set aside in favour of the assessee.

Ratio Decidendi: A notice under Section 73 cannot be sustained against a service recipient for a period when the statute did not impose a return-filing obligation on that class of persons under Section 70, and the later introduction of Section 71A does not retrospectively validate such proceedings.

---