Service tax - Show cause notice served

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Miss Riya (Querist)

05 September 2022 The aggregate value of services were less than 10 lacs. Had registration in service tax in 2014...Also did not collected service tax from customers in 2014. CA guided not to pay service tax as not liable. Now in 2022 served with show cause notice related to that year 2014 having huge penalty. The liability to pay service tax now is even valid or not ?

Adv. Ravish Bhatt, ADIT, CIOT

Adv. Ravish Bhatt, ADIT, CIOT (Expert)

06 September 2022 Service tax notice can be issued within 30 months from relevant date and within 5 years from relevant date in case of fraud, misstatement, suppression etc. I do not fathom as to how an SCN is now issued for year 2014. Prima facie it is without jurisdiction but it remains valid until not set aside. You can raise aspect of lack of jurisdiction in reply to SCN or try to make out a case for setting aside the SCN in a writ petition for being without jurisdiction. Check up SCA judgment in case of Whirlpool Corporation v Registrar of Trademarks as regards maitainability of writ even when alternative remedy is available.

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