2026 (5) TMI 1518

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....the learned Commissioner upheld the demand of service tax amounting to Rs.2,28,763/- along with applicable interest and penalty as confirmed by the adjudicating authority, while granting partial relief by setting aside the late fee that had been imposed for non-filing of returns. 2. The appellant is engaged in providing intermediary services for the 'selling of space for advertisement in print media'. The appellant contended that such services are squarely covered under the negative list of services as defined under Section 66D of the Finance Act, 1994, and hence are not liable to service tax. Acting on this understanding, the appellant neither obtained service tax registration nor discharged any service tax liability. Periodical....

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....bmitted that the said notice was belatedly communicated to the appellant through WhatsApp on 19.10.2019, more than a year after its issuance, and that such communication does not constitute valid service within the meaning of Section 37C of the Central Excise Act, 1944 as made applicable to the Finance Act, 1994 by virtue of Section 83 thereof. It was further submitted that although this argument was specifically raised before the learned Commissioner (Appeals), the said authority failed to address or adjudicate upon the same, rendering the impugned order deficient in reasoning. 6. Section 37C of the Central Excise Act, 1944, applicable here by virtue of Section 83 of the Finance Act, 1994, prescribes the modes of service of notices and ....

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....des of service prescribed thereunder are exhaustive, not illustrative. The statute mandates service by registered post with acknowledgement due, speed post with proof of delivery, or courier approved by the Central Board. Where service by these primary means is not feasible, the statute provides for affixation at the place of business or residence of the assessee, and failing that, at the notice board of the issuing authority. WhatsApp, a private messaging application on a mobile phone, finds no mention whatsoever in the statutory framework. It is neither contemplated by the legislature nor has it been brought within the fold of permissible modes of service by any delegated legislation or executive instruction having the force of law. Servi....

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....e extended limitation period backwards from the date of WhatsApp communication i.e. 19.10.2019, the entire demand for the year 2013-14 would fall beyond the five-year window. Consequently, the demand of Rs.2,26,934/- is patently beyond the extended period of limitation and is liable to be set aside on this ground as well. 10. That leaves only the residual demand of Rs.1,829/- pertaining to the financial year 2014-15 for consideration. We note that the entire case of the Revenue rests upon third-party data received from the Income Tax Department. No independent evidence of evasion, concealment, or wilful suppression has been produced. The invocation of the extended period of limitation under the proviso to Section 73(1) of the Finance Act....