ARUNA SUNRISE HOTELS LTD. Vs. CCE

JUDGEMENT

(1.) DURING the period from 16.11.97 to 1.6.98, the appellants had received Goods Transport Operators Service but had not paid service tax thereon. The department issued a show -cause notice on 8.6.2001 for demanding such tax and imposing penalty. The demand was contested. In adjudication of the case, the original authority confirmed the demand of tax of Rs. 1,95,598/ - for the above period under Section 73(a) of the Finance Act, 1994 with interest @ 24% under Section 75 of the Act and imposed penalties on the party under Sections 76 and 77 of the Act. The decision of the adjudicating authority was upheld by the Commissioner (Appeals). The present appeal is directed against the order of the appellate authority.

(2.) AFTER hearing both sides and considering their submissions, we note that the question whether for the above period, recipients of GTO Service were liable to pay service tax under Section 73 of the Finance Act 1994 in view of the amendments brought to the said Act under Section 117 of the Finance Act 2000 and subsequent amendments under the Finance Act 2003 is already covered by the Tribunal's decision in L.H. Sugar Factories Ltd. v. CCE Meerut affirmed by the Hon'ble Supreme Court vide 2005 (187) ELT 5 (SC). It was held that a person receiving the taxable service of GTO was not liable to pay tax on such service inasmuch as his liability to file returns was under Section 71A and not under Section 70 of the Finance Act 1994. It was held that the liability to pay service tax on GTO service under Section 73 of the Act was cast only on those assessees who were liable to file returns under Section 70.

(3.) THE appellants have challenged the demand of tax on the ground of limitation as well. We need not examine this ground as they succeed on merits.