KANORIA CHEMICAL INDS. LTD. Vs. CCE

JUDGEMENT

(1.) THIS appeal is directed against Order -in -Appeal dated 31.3.2005 wherein the Commissioner (Appeals) has upheld the Order -in -Original imposing penalty and interest on the appellants.

(2.) THE relevant facts that arise for consideration are that the appellants were recipient of service from goods transport operators for the period 15.11.97 to 2.6.98. The said provision was challenged in different forums and finally by retrospective amendment of Finance Act, 2003 all the persons who were availing GTO services during the period 16.11.97 to 2.6.98 were made liable to pay the service tax. The said Finance Act, 2003 got assent of the President on 17.5.2003 and the appellants were required to submit the service tax return by 13.11.2003. The appellants deposited the service tax with the Government on 3.2.2004 and filed the return on 13.2.2004. Show cause notice was issued to the appellants seeking imposition of penalty under various sections and also to impose interest under Section 75 of the Finance Act, 1994. On adjudication the adjudicating authority imposed the penalty under different sections and also sought to recover interest from the appellants under Section 75 from 12.6.2000 till the date of payment of service tax. On appeal the Commissioner (Appeals) did not give any relief to the appellants and he also upheld the order of the adjudicating authority in to -to. Hence, this appeal.

(3.) LEARNED D.R. on the other hand submits that the appellants ought to have known the fact that the Finance Act, 2003 was given assent by the President on 17.5.2003 and hence, they are required to file the returns of the services received by them from GTO by 13.11.2003 and discharge the duty liability along with interest. But they have paid the service tax only by 3.2.2004, hence, they have been correctly penalized.