COMMISSIONER OF C. EX. Vs. UNITED PLASTOMERS

JUDGEMENT

(1.) THE revenue has filed the present appeal under Section 35G of the Central Excise Act, 1944 challenging the order dated 20 -6 -2005 passed by the Customs Excise and Service Tax Appellate Tribunal, New Delhi raising the following substantial questions of law:

(2.) THE respondent -assessee is providing the services of consignment agents as defined under Section 65(23) of the Finance Act, 1944 as amended (hereinafter referred to as the 'Act'). It was found that the respondent is not registered with the Department as required under Section 69 of the Act and has also not paid service tax as required under Section 66 of the Act. It is alleged that the respondent received commission of Rs. 45,79,411/ - for the period from August, 1999 to February, 2001 and Rs. 32,28,379/ - for the period from March, 2001 to November, 2001. As such, the respondent was issued two show cause notices for the recovery of the service tax amounting to Rs. 2,28,971/ - and Rs. 1,61,419/ - respectively along with interest and imposition of penalty under Sections 76 and 77 of the Act. The assessee -respondent submitted reply dated 22 -10 -2003 as under:

(3.) THE present Show Cause Notice is based on wrong calculations leading to arbitrary demand, in so far as Service Tax has been demanded for the month of August, 1999, whereas the responsibility of payment of Service Tax was cast upon the C/F agents w.e.f 1 -9 -1999 vide amendment to Section 68(1) of Finance Act. Therefore, the demand of Service Tax for the month of August, 1999 being illegal, arbitrary, ultra virus the Constitution, may kindly be dropped in entirety.