VANASTHALI TEXTILES INDUSTRIES Vs. COMMR. OF C. EX.

JUDGEMENT

(1.) THIS appeal is directed against order -in -appeal dated 31 -10 -2005 which upheld the order -in -original imposing penalty and demanding interest from the appellant.

(2.) THE relevant fact that arise for consideration are appellant availed the services of goods transport operators and C and F agents during the period 1997 -98. During the relevant period, the receiver of services recipient is liable to pay the service tax. This proposition of the law was challenged by trade in different forums and retrospective amendment was carried out to the Finance Act, 1994, which included in the statute, the provisions for collecting the service tax from the recipient of the services. The appellant paid the service tax involved in this case on 31 -1 -04 and 4 -2 -04. They also deposited the interest from 30 -11 -03 till the payment of the service tax. Show cause notice was issued to the appellant on 16 -11 -04 directing them to show cause as to why the interest and penalty could not be imposed on them. The adjudicating authority confirmed the demand of interest from the period 13 -5 -2000 till the payment of service tax and also imposed penalty on the appellant. On an appeal, Commissioner (Appeals) also upheld the same.

(3.) LEARNED Consultant appearing for the appellant submits that the issues squarely covered by the decision of this Tribunal in the case of Mount Shivalik Industries Limited v. Commissioner of Central Excise and Customs, Jaipur as reported at 2006 (3) S.T.R. 199 (Tri. - Del.) and submits that the show cause notice was issued to them after the discharge of service tax liability by them.