UNION OF INDIA Vs. BHARAT ALUMINIUM CO. LTD.

JUDGEMENT

(1.) The instant appeal under Section 35-G of the Central Excise Act, 1944 is directed against the order dated 3-4-2007 (Annexure A/1) passed by the Customs, Excise & Service Tax Appellate Tribunal, Principal Bench, New Delhi, (for short "the Tribunal") in appeal No. ST/25/2006, ST/75/2006 [2007 (8) S.T.R. 27 (Tribunal)]. The appeal of the revenue was admitted for hearing by this Court on 10-9-2010 on the following substantial questions of law :

(2.) The facts, in brief, as projected by the revenue are that the respondent company was engaged in the manufacture of excisable goods falling under Chapter 76 of the First Schedule to the Central Excise Tariff Act, 1985. According to learned counsel for the revenue, the service provided by the "clearing and forwarding agent" was exigible to Service Tax with effect from 16-7-1997. The service receiver was made responsible for collecting the Service tax by amendment in the Service Tax Rules, 1994. The respondent is further required to obtain the Service tax registration, file returns and discharge tax liability under the provisions of Chapter V of the Finance Act, 1994, in respect of services received from their consignment agents. A show cause notice under C.No. V(S. Tax) 4-41/Adj/Bil/2002/3769, dated 2-7-2002 (Annexure A/2), was therefore, issued to the respondent-assessee for recovery of Service tax amounting to Rs. 1,97,35,583/- on clearing and forwarding agent. The Assistant Commissioner, Central Excise, Division Bilaspur, vide order in original No. 17/STAX/ADJ/05 dated 13-4-2005, (Annexure A/3) confirmed the demand of the aforesaid duty and ordered for imposition of penalties and interest.

(3.) Being aggrieved by the order dated 13-4-2005, the respondent-assessee preferred an appeal before the Commissioner, (Appeals) Central Excise, Raipur. The Commissioner (Appeals), vide order dated 20-10-2005 (Annexure A/4) in Appeal No. 121/RPR-1/2005, dropped the demand of Service Tax for the period upto 15-9-1998 holding that the provider of the service has to pay the tax, but confirmed the demand of Rs. 1,35,47,981/- payable after 16-9-1998 for the period after 15-9-1998.