By Puloma Dalal, Jayesh Gogri Chartered Accountants
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Return filed in 2003 and based on scrutiny of return, service tax paid in 2004 but show-cause notice issued in 2006 invoking extended period — Ground of limitation raised but the same not considered by Commissioner (Appeals) — Impugned order set aside — Commissioner (Appeals) to first decide limitation and if appellant succeeds, merit not to be considered — Merits to be considered if appellant failed in limitation.
Facts:
The appellants filed their service tax return for the period April 2003 to September 2003 on 24- 10-2003.
A query received from the Department on 16-1-2004 to explain amount paid by them in the return, was explained by appellants vide letter dated 4-2-2004 and paid the service tax on 22-3-2004. On 4-10-2006, the appellants were issued show-cause notice for payment of service tax for the period 14- 5-2003 to 28-5-2003.
Held:
The Tribunal observed that the duty for the disputed period was paid along with interest on 22-3-2004 and show-cause notice was issued on 4-10-2006 which was beyond the statutory period of one year. The appellants took this ground before the Commissioner (Appeals) but it was not considered. Hence the impugned order was set aside and matter was sent to the Commissioner (Appeals) first to decide the limitation issue, if appellants succeeded on limitation issue, merits were not required to be considered. If limitation issue failed, then the case was to be decided on the basis of merits.
