TaxTMI 
TaxTMI 
2014 (8) TMI 618
X X X X Extracts X X X X
X X X X Extracts X X X X
....Finance Act, 1994 by the Finance Acts of 2000 and 2003, the appellant became liable for payment of service tax during 1997-98 period as the service recipient. However, they neither paid the service tax nor filed the return under section 70, as there was no provision for them to file the return. Subsequently, by section 158 of the Finance Act, 2003, section 71A was introduced, which provided that notwithstanding anything contained in sections 69 and 70, the provisions thereof shall not apply to a person referred to in proviso to sections 68 for filing of return in respect of service tax for the respective period and the service specified therein and such person shall furnish return to the Central Excise Officer within six months from the dat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g upholding of the demand of service tax along with interest and imposition of penalty, the Revenue has filed the appeal against the same order for enhancement of penalty, as according to the Department, reduction of penalty to Rs. 2 lakh was not justified. Heard both the sides. Shri Hemant Bajaj, advocate, learned counsel for the appellant, pleaded that show-cause notice dated November 4, 2003 had been issued subsequent to the introduction of section 71A by the Finance Act, 2003, that though the show-cause notice for demand of service tax along with interest has been issued by invoking section 73, as held by the Tribunal in the case of L. H. Sugar Factories Ltd. v. CCE, Meerut-II reported in [2006] 3 STR 230 (Tri.-Delhi), section 73, as ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on which the Finance Bill, 2003 receives the assent of the President, in the prescribed manner on the basis of the self-assessment of the service tax and the provisions of section 71 shall apply accordingly and since the appellant have not complied with the provisions of section 71A, the Department is justified in issuing the showcause notice for recovery of the service tax demand which they were liable to pay but had not paid. I have carefully considered the submissions from both the sides and perused the records. The show-cause notice dated November 4, 2003 had been issued to the appellant subsequent to the introduction of section 71A which required the appellant to ascertain their service tax liability on selfassessment basis, pay the ....