Supreme Court: Assessee Cannot Be Penalised Based On Show-Cause Notice Mentioning Erroneous Category Of Service| Service Tax

The Division bench of the Supreme Court comprising of Justice Abhay S. Oka and Justice Sanjay Karol in the case Commissioner of Service Tax, Mumbai-II v. M/s 3I Infotech Ltd., observed wherein the bench was hearing the appeal and has held that the Assessee cannot be subjected to the penalty on the basis of a show cause notice containing a completely erroneous category of service.
Therefore, the bench in the case rendered the demand made on the basis of the said show cause notice illegal.
The present appeal moved had arisen out of the service tax wherein it demands on the basis of four Show Cause Notices and the notices were issued under section 73 of the Finance Act, 1994 (the Finance Act) for the demand of service tax.
The details of the show-cause notices issued are as follows:
The show cause notice dated October 19, 2009 which is being issued for the period of 1.4.2004 to 31.3.2009
The show cause notice dated October 20, 2010 which is being issued for the period of 1.4.2009 to 31.3.2010
The show cause notice dated October 21, 2011 which is being issued for the period of 1.4.2010 to 31.3.2011
The show cause notice dated October 22, 2012 which is being issued for the period of 1.4.2011 to 31.3.2012
The court while considering the facts and circumstances of the case wherein the appeal is moved by the assessee that the other three show-cause notices mentioned the correct classification, and the findings which are based on a careful consideration of the factual and legal aspects.
Accordingly, the court dismissed the appeal and refused to interfere with the same.