VALLAMATTAM COMMUNICATIONS Vs. COMMISSIONER OF C. EX., KOCHI

JUDGEMENT

(1.) THE appellant is required to pre -deposit service tax amount of Rs. 27,437/ - and like sum of penalty. The appellant is a dealer of M/s BSNL. The Revenue has proceeded against the appellants on the ground that they were rendering marketing and distribution of Cellular Mobile Telephone Services to M/s BSNL and the said activities were covered under Section 65(19) of the Finance Act, 1994. The appellants contention is that they are not covered under the said category. They referred to several orders passed by Orders -in -Original No. 4/2006 ST (JC) dated 1 -3 -2006 and 7/2006 ST (JC) dated 1 -5 -2006 dropping the proceedings. It is the submission of the learned Chartered Accountant that these orders have not been appealed by the Revenue and therefore in terms of the Apex Court judgment rendered in the cases of Indian Oil Corporation Ltd. v. CCE, Baroda [2006 (202) E.L.T. 37 (S.C.)] and CCE, Navi Mumbai v. Amar Bitumen & Allied Products Pvt. Ltd. [2006 (202) E.L.T. 213 (S.C.)], the impugned order is not sustainable. He files copy of the Orders -in -Original cited supra.

(2.) HEARD the learned DR in the matter.

(3.) ON a careful consideration of the matter, we notice that the Department had dropped the proceedings on the very issue by the Orders -in -Original cited supra. These orders have not been challenged by the Department. Therefore in terms of the cited Apex Court judgment, subsequent raising of demand on the very issue is not sustainable. Therefore, the stay application is allowed unconditionally by granting waiver of pre -deposit of the amounts and staying its recovery till the disposal of the appeal. The appeal to come up for final hearing in its turn.