Service Tax Liability

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my clients had been providing transportation services for the delivery of Diesel and petrol from petroleum companies to retailers for the financial year 2015-16 to 2017-18(till June 2017) and did not charge any service tax on the services provided. Now, the service tax department has issued a notice stating that already SCN issued in April 2021 and Ist Personal Hearing called for, but none of them appeared(But originally my client has not received because he was shifted to another place). Therefore, now they have issued another 2nd Personal Hearing Notice and served it to my client. Further, I went to the department and argued that it is a time-barred case according to sec 73(1) of Finance Act,1994, where you cannot insist my client to remit the same, since it is more than 5 years due. However, the officials again issued 3rd Personal Hearing Notice to me and provide an explanation.

Please let me know, is there my stand is correct and also any exemption on the transportation of Diesel and Petrol to petroleum companies.

Please provide some citations to defend my client's case.

Thanks in Advance.

AI Summary

Limitation defence: COVID-era extensions may revive time-barred service tax demands; contest SCN and attend hearings.
Whether transportation of diesel and petrol without charging service tax for 2015-16 to mid 2017 is time barred under limitation is contested: the carrier relies on the five year bar under section 73(1) while the department relies on a Supreme Court extension of limitation effected during the COVID period, and there is no exemption for transporting petroleum products; typical service tax liability runs from Goods Transport Agency to consignor to consignee, and parties are advised to file formal objections and attend hearings.