Service tax demand remanded for fresh consideration of limitation and SSI unit liability as service receiver.

Service tax demand for 1997-98, based on amendments in the Finance Act, 2003 and confirmed by reference to the Finance Act, 2004, was required to be re-examined because the appellant's pleas on limitation and its status as an SSI unit not liable as a service receiver had not been properly considered. The matter was remanded to the Commissioner (Appeals) for a fresh decision after granting the appellant an opportunity of hearing, with no opinion expressed on the merits.

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Issues: Whether the service tax demand for the period 1997-98, raised on the basis of amendments made in the Finance Act, 2003 and confirmed by reference to the Finance Act, 2004, could be sustained without considering the plea of limitation and the appellant's claim that it was an SSI unit not liable to pay service tax as a service receiver.

Outcome: The matter was remanded to the Commissioner (Appeals) for fresh decision after giving the appellant an opportunity of hearing, without expressing any opinion on merits.

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