Vague show cause notice and unclear demand breakup cannot sustain service tax, interest, or penalties.

A show cause notice raising service tax on gross receipts without a clear bifurcation between taxable services and corresponding amounts was held vague and legally unsustainable. The notice was internally inconsistent because it gave a work-wise breakup in one part but elsewhere alleged non-furnishing of proper details, and there was no material showing disobedience of summons or deliberate non-cooperation to justify a broad demand without particulars. As the notice lacked the gist of the accusations, the consequential adjudication confirming service tax, interest, and penalties was set aside.

---

---

Issues: Whether the show cause notice and the consequential adjudication were vitiated for want of a clear breakup of the demand and for vagueness in the allegations.

Analysis: The demand was raised on gross receipts without a clear bifurcation between the alleged taxable services and the corresponding amounts. The notice itself was found to be internally inconsistent, because it gave a detailed work-wise breakup in one part but later proceeded on the basis that the assessee had failed to furnish proper details. There was no material showing disobedience of summons or deliberate non-cooperation so as to justify such a broad demand without particulars. In these circumstances, the notice was held to be lacking in the gist of accusations and the demand to be unsustainable.

Conclusion: The show cause notice was held to be vague and bad in law, and the impugned order confirming service tax, interest, and penalties was set aside.

---