LAWS(DLH)-2017-5-100

AMBUJA CEMENTS LTD. Vs. COMMISSIONER, SERVICE TAX COMMISSIONERATE

Decided On May 08, 2017
Ambuja Cements Ltd. Appellant
V/S
Commissioner, Service Tax Commissionerate Respondents

JUDGEMENT

(1.) This is an appeal under Sec. 35G of the Central Excise Act, 1944 ('CE Act') read with Sec. 83 of the Finance Act, 1994 ('FA') against the final order dated 20th Sept., 2016 passed by the Customs, Excise and Service Tax Appellate Tribunal, Delhi ('CESTAT') dismissing appeal No.ST/A/53726/2016-CU(DB).

(2.) The facts in brief are that the Appellant/Assessee is inter alia engaged in the manufacture of clinker and cement falling under Chapter heading 25 of the CE Tariff Act, 1985. Between 16th July, 1997 and 30th Sept., 1999, the Appellant received 'Clearing and Forwarding Agent Service' from various services providers. In terms of the provisions that existed during the relevant period, the Appellant paid service tax of Rs.35,42,021 for the period 16th July, 1997 to 30th Sept., 1999 under the category of 'Clearing and Forwarding Agent Service' on the services so received.

(3.) In its decision in Laghu Udyog Bharti Vs. Union of India 1999 (112) ELT 365 (SC), the Supreme Court by its judgment dated 27th July, 1999 held that the person who is receiving services cannot be made responsible for filing returns and paying tax. To overcome the said judgment, on 23rd Aug., 1999 Notification No.7/1999-ST was issued with effect from 1st Sept., 1999 whereby sub-clause (iii) in Rule 2(1)(d) of the Service Tax Rules, 1994 was omitted. Meanwhile on 18th Nov., 1999, following the judgment of the Supreme Court in Laghu Udyog Bharti <i>(supra)</i>, the Appellant filed refund claim of Rs.35,42,021 being the service tax paid during the period 16th July, 1997 to 30th Sept., 1999.