Goods Transport Operator Service - Time to bottle Ghost
WITH boring regularity, we have been writing about the ghost of Service Tax on GTO service for a short period from 11.7.1997 to 02.02.1998 which is still making rounds in the corridors of the Tribunal and the Courts. With the insertion of Section 71A vide Finance Act, 2003, the dispute did not die because there was no reference to Section 71A in Section 73 of the Finance Act, 1994. It was only in 2004 that Section 73 was totally redrafted. But when the law was fully made foolproof in 2004, the limitation factor started stepping in. Recently the Gujarat High Court upheld the CESTAT orders holding that the show cause notices issued after the Finance Act, 2004 were time barred. Interestingly, the Larger Bench decision 2010-TIOL-1185-CESTAT-DEL-LB holding that the demands were not barred by limitation has become per incurium .
Point to be noted is, is it worth taking the time of the Courts and Tribunals on this issue where the revenue involved would be negligible. Why can't the Government consider abolishing the tax by issuing a Notification under Section 11C as a goodwill gesture and making good economic sense?