https://www.taxtmi.com/forum/issue?id=107368 Collecting service tax without depositing it exposes the provider to recovery, penalties and prosecution; limitation for issuing demands is governed by statute and may restrict the period for which a show cause notice can be issued. Misclassification in a show cause notice affects the legal basis of the demand: it may be a substantive flaw that nullifies the notice if the service is not taxable under the alleged category, or it may be corrected by departmental corrigendum or statutory rectification before adjudication. Despite technical defences, retention of collected tax raises unjust enrichment concerns, and prompt compliance or use of settlement mechanisms is advised to limit exposure. en-us Fri, 19 Sep 2014 14:51:21 +0530 Thu, 23 Jan 2025 15:57:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=107368 Collecting service tax without depositing it exposes the provider to recovery, penalties and prosecution; limitation for issuing demands is governed by statute and may restrict the period for which a show cause notice can be issued. Misclassification in a show cause notice affects the legal basis of the demand: it may be a substantive flaw that nullifies the notice if the service is not taxable under the alleged category, or it may be corrected by departmental corrigendum or statutory rectification before adjudication. Despite technical defences, retention of collected tax raises unjust enrichment concerns, and prompt compliance or use of settlement mechanisms is advised to limit exposure. Discussion-Forum Service Tax Fri, 19 Sep 2014 14:51:21 +0530 https://www.taxtmi.com/forum/issue?id=107368