THIRUMALAI CHEMICALS Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The stay application and appeal were taken up together for disposal as per law in view of short question having arisen in the appeal. Appellants were initiated proceedings for recovery of Service Tax payable on services received from "Goods Transport Operators" during the period 16 -7 -97 to 1 -6 -98 and further tax demanded payable on the services received from "C and F agents" for the period 16 -7 -97 to 31 -8 -97 under Section 75A on the allegation that appellant's had not registered under Section 68 of the Act. Penalty was also imposed under various provisions of the Act.

(2.) Appellant's contention was that there was no provision in the Service Tax to file for registration and for filing returns and also for invoking larger period. They contend that the tax liability cannot be determined without a provision of law for filing returns and for assessment. However the authorities rejected their plea and confirmed the tax including imposition of penalties. However, penalty was set aside by the Commissioner (Appeals). As the matter stood, the Central Govt. has not amended the provisions of Service Tax by modifying the Section 68 and introducing Section 71A. By virtue of these provisions, the appellants are required to file returns in respect of service tax for the respective period and service specified therein.

(3.) Ld. Consultant submits that in terms of Section 71A, the returns are required to be filed within 6 months from the day on which Finance Bill, 2003 receives the assent of the President in the prescribed manner on the basis of the self assessment of the service tax and the provisions of Section 71 shall apply accordingly. It is his contention that proceedings leading to confirmation of service tax was premature which has got retrospective effect. Appellants are now required to carry out their self assessment and file return and only thereafter the assessments are required to be completed and tax to be paid on by the appellants. He submits that in view of amendment brought out, the matter is required to go back to the authorities to enable the appellants to file their returns for completion and for assessment in accordance with the amended provisions of Service Tax.