2007 (6) TMI 5

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.... they stopped paying Service Tax on the brokerage activities during the period July 96 to August 97. The revenue issued eight show cause notices to them for filing the returns for a period July 96 to August 97. The respondents did not file return nor any reply to the show cause notices. The revenue issued a show cause notice dated 21-3-2001 for the recovery of Service Tax from the respondents. The respondent's resisted the show cause notice and contested the recovery on the ground that they were cheated by some people who sold forged and fake shares, hence, they had to close down the activities. Since all the staff left the company they could not comply with the statutory requirement of filing the return. The adjudicating authority confirme....

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....ovisions of Section 80, having been shown the reasonable cause of non payment of Service Tax. He further submits that in cross objection they have challenged the confirmation of the demand on the ground that show cause notice dated 21-3-2001 is blatantly time barred and this submission has not been considered by the Ld. Commissioner (Appeals) while passing the order. It is his submission that the department was aware that the respondents was not filing the quarterly returns and, hence, subsequent show cause notice dated 21-3-2001 is improper. It is his submission that the entire demand is time barred and, hence, consequent penalty and interest is also liable to be set aside. 5. The Ld. SDR in rejoinder his submits that the issue of time ....