SCN issued After 10 years with relation to Non-Payment of Service Tax by Providing Port Service is not valid: Orissa HC [Read Order]

In a significant case, the Orissa High Court (HC) held that a Show Cause Notice ( SCN ) issued after 10 years about Non-payment of service tax by providing port service is not valid.

Satish Ch Das & Co, the petitioner challenged the notice dated 23rd April 2007 and letter dated 30th October 2017 issued by the Department asking the Petitioner to appear personally in connection with an earlier Show Cause Notice (SCN) issued by the Commissioner on 23rd April 2007. The SCN was in connection with the case of the Department regarding non-payment of service tax by the Appellant providing ‘Port Services’.

Port services include the receiving, handling, unloading and even additional shipping of clients’ products once they arrive at the port and come off the ship. As per CBIC, Service tax is payable on port and dock charges, Port dues, Cargo handling and storage charges, Railway haulage charges, and container handling. Section 65(81) of Finance Act, 1994 as amended “Port service” means any service rendered within a port or other port, in any manner.

It was evident that noaction was taken under the above SCN issued on 23rd April 2007 which was for the period 1st October 2005 to 31st March 2006. The Petitioner, therefore, was under the impression that the Department had dropped the proceedings. 

After the lapse of 10 years second impugned notice dated 30th October 2017 was issued to the Petitioner asking him to appear for the hearing. The Petitioner filed an application dated 9th November 2017 before the authority expressing its inability to collect documents after such a long lapse of time.

A single-member bench comprising Justice M S Raman, in light of the case of Aspinwal and Co. Ltd. v. Commissioner of Central Excise, quashed the impugned notice dated 23rd April 2007 and further letter dated 30th October 2017 issued by the Department to the Petitioner.

To Read the full text of the Order CLICK HERE

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