one of my client (soleproprietorship firm) is in transport business owning 4-5 trucks. It got Service Tax registration for Goods transport agency service on 01.06.2007. Its main service is to provide trucks to transport contractors (who are generally companies & they actually took transport contracts from companies through tenders) in which my client is not liable to pay service tax as the consignor or consignee who is liable to pay freight is liable to pay service tax. Its didn't provide any taxable service since then. Whatever service provided was exempted by notification. It didn’t file any service tax return as there is no tax liability on his part during the said period. Now, the assessee has received a notice from Service Tax dept. that being a registered assessee it need to file return from April, 2008 to march, 2013. They mentioned to comply with the provisions of sec 69 i.e. file return being a registered asseessee otherwise they will initiate penal action. i need to know what should we do in this case. Should we need to file return for the period mentioned in notice i.e. April, 2008 to march, 2013. Or can it take the benefit of Circular No.97/8/07-ST dated August 23, 2007 in which it is said that ” Persons who are not liable to pay service tax (because of an exemption including turnover based exemption), are not required to file ST-3 return”. If it file return then again issue will be to pay late fees & penalty?? Please suggest how to proceed in this case.
CAclubindia
