Applicability of Finance Act, 1994 after introduction of CGST Act, 2017

[Sudhir Kumar]

As the Finance Act, 1994 has been repealed and replaced by CGST Act, 2017. So after ceasation of Chapter V of Finance Act, 1994 w.e.f 01.07.2017 whether the departmental authority is legallay empowered to go for investigation in the service tax matter by quoting section 174 of CGST Act, 2017 as saving clause of erstwhile Section and Rules of the Finance Act, 1994.

[Amit Agrawal]

What are causes of your doubt?

[KASTURI SETHI]

Liability pertaining to pre-GST era cannot be avoided. Pl. go through the following case law :-

2023 (2) TMI 178 - MADRAS HIGH COURT AMIRTA INTERNATIONAL INSTITUTE OF HOTEL MANAGEMENT Versus PRINCIPAL COMMISSIONER OF CGST & C. EX., CHENNAI

[Shilpi Jain]

However, any fresh investigations now under Finance Act, 1994, would not be of use as any demand would be time barred.

AI Summary

Saving clause preserves pre GST service tax liabilities, but initiating fresh investigations now risks being time barred. Whether authorities can conduct post repeal investigations into pre GST service tax matters depends on the saving clause in section 174 of the CGST Act, 2017; pre GST liabilities continue to exist but fresh investigations may be ineffective because they can be time barred.