JUBILANT ORGANOSYS LIMITED Vs. CCE

JUDGEMENT

(1.) M /s Jubilant Organosys Ltd., formerly M/s Vam Organic Chemicals Ltd., have factories manufacturing chemicals located at different places including one at Gajraula. The dispute relates to confirmation w liability of service tax, between April 1999 and August 2002 (16.08.2002), as in Commissioner (Appeals)'s order dated 28.04.2005 which has confirmed the liability of service.

(2.) ON 16.08,2002, Service Tax Rules 1994 underwent certain far -reaching amendments, A new Clause (iv) came to occupy in the Service Tax Rules 1994 in Clause (d) Sub rule 1 of Rule 2 :

(3.) THE show cause notice dated 04.05.2004, which was the starting point of the present issue alleged that the appellants were receiving "consulting engineer services" from their foreign collaborators. It was also alleged that they had also availed the ''scientific or technical consultancy services" between the period 01.04,99 and 31.03.2003. The notice apart from contemplating demand of Rs. 16,68,650/ - also envisaged invoking of penal and interest provisions under the Finance Act 1994. The case was adjudicated by the Assistant Commissioner who reduced the quantum of demand to Rs. 11,91,150/ -, imposed penalty and charged interest. When the matter was taken up before the Commissioner (Appeals), the appellants raised the following two issues: