HIND POLYMERS Vs. CCE

JUDGEMENT

(1.) THE appellant Company has challenged the order of the Commissioner (Appeals) made on 08.05.2007 upholding the order of the adjudicating authority by which the demand of service tax of Rs. 2,42,423/ - was upheld and penalty of like amount imposed under Section 78 of the Finance Act, 1944, besides imposing other penalties.

(2.) THE appellant was engaged in the manufacture of sheathing compound and colour master batches, and had received 'Goods Transporter Services' during the period from 16.11.1997 to 02.06.1998, for which freight charges of Rs. 48,48,452/ - were paid. The appellant did not furnished returns as contemplated by Section 71 -A of the Act read with Rule 7 -A within a period of six months from 13.05.2003 and did not deposit the Service Tax as contemplated thereunder. The appellant did not even inform the Department about the freight charges paid prior to 26.02.2004. It was, therefore, held that, the appellant had suppressed the material facts.

(3.) THE only contention that was raised before the Appellate Commissioner was that, the show cause notice issued on 25.06.2004 was hit by period of limitation. This was rightly negatived by the Commissioner (Appeals), in view of the provisions of Rule 7 -A read with Section 71 -A of the Act.