Service Tax on Goods Transport from 16.11.1997 to 1.6.2008 – Unending Saga - Larger Bench Rules that Show Cause Notice issued in 2004 is valid
THE story began in 1997 and with many twists and turns, continues even in 2010. It has travelled to Supreme Court three times, resulting in landmark judgements in case of Laghu Udyog Bharati , L.H. Sugar Factories and Gujarat Ambuja Cements Ltd 2005-TIOL-53-SC-ST. Somehow the Government is not prepared to lose revenue for this short period of six months and trying all means to collect service tax on Goods Transport during this period. In yet another dispute of whether the Show Cause Notice issued in 2004 demanding service tax for the above period is valid or not, the Larger Bench of the Tribunal has answered the reference in favour of revenue by holding that the taxpayers cannot argue 'Heads I win and Tails you lose'.
Probably this issue has to go the Supreme Court again!
Please also see:
1. Service tax on goods transport stranded on the highway?
2. SC upholds another retrospective legislation; Service tax on GTA is valid
3. - 19.08.2008
4. - 19 08 2005
We will bring you this landmark case tomorrow.