COMMISSIONER OF C. EX., HYDERABAD Vs. ORIENT CEMENTS

JUDGEMENT

(1.) THE Revenue has filed this appeal against the Order -in -Appeal No. 1/2005, dated 30 -6 -2005 passed by the Commissioner of Customs & Central Excise (Appeals -I), Hyderabad.

(2.) THE Respondents are the manufacturers of Cement and Clinker both excisable commodity. They filed a refund claim for an amount of Rs. 11,03,392/ - paid by them during the period from 17 -10 -1998 to 30 -6 -1999 as service users towards the services received by them from the clearing and forwarding agents for the said period. The contention of the Respondents is that there is no tax liability on service users on C and F agents for the period subsequent to 16 -10 -1998 as per Finance Act, 2003. The Original Authority rejected the refund claim. The Respondents appealed to the Commissioner (Appeals). The Commissioner (Appeals) relying on the decision of the Apex Court in the case of Laghu Udyog Bharati v. U.O.I. [2006 (2) S.T.R. 276 (S.C.) = 1999 (112) E.L.T. 365 (S.C.)] held that the Respondents who are users of the service provided by C and F agents are not liable to pay the service tax as the Supreme Court has held that Rule 2(d)(xii) and (xvii) of Service Tax Rules, 1994, as amended in 1997, ultra vires the act itself. The Revenue is aggrieved over the impugned order on the following grounds : -

(3.) SMT . Rukmani Menon, learned Advocate appeared for the Respondents and Shri K. Sambi Reddy, JDR appeared for the Revenue.