No Service Tax without Proper Categorisation of Services: CESTAT Quashes Demands against HIMUDA for Vagueness and Lack of Specific Classification [Read Order]

The CESTAT quashed service-tax demands against HIMUDA, observing that the show-cause notice lacked clear classification of the alleged taxable service. The Tribunal held that a vague notice without identifying a specific taxable category violates the principles of natural justice and cannot sustain a levy. Being a statutory body performing government functions, HIMUDA’s activities were not shown as commercial services. The order reiterated that revenue must precisely categorise the service before imposing tax, and demands based on broad or undefined allegations are unsustainable.