FUTURA FIBRES AND FUTURA POLYMERS Vs. CCE

JUDGEMENT

(1.) These appeals are against demands of service tax on "goods transport service" received by the appellants during the period 16/11/97 to 01/06/98. In the case of M/s. Futura Fibres (Appellants in Appeal No. S/25/04), the demand of tax was raised in a show -cause notice dated 04/01/02, while in the case of M/s. Futura Polymers (Appellants in Appeal No. S/28/04), similar demand was raised in a show -cause notice dated 06/12/01. The original authority confirmed the demands of tax and the first appellate authority sustained the same. Hence these appeals of the assessee.

(2.) After examining the records and hearing both sides, I find that the question to be decided is whether the appellants qua service -receivers were liable for service tax during the aforesaid period. Ld. Counsel for the assessees has submitted that, as the subject show -cause notices were issued after 12/05/2000 (the date on which the Finance Act, 2000 received Presidential assent), the demands of Service Tax raised therein are hit by the apex Court's ruling in Laghu Udyog Bharati Vs UOI [1999 (112) E.L.T. 365 (S.C.)] = (2002 -TIOL -162 -SC -ST). Even otherwise, the demands are barred by limitation prescribed under Section 73 of the Finance Act, 1994. The DR has reiterated the findings in the impugned order. Ld. Counsel has pointed out that an issue similar to the issue arising in these appeals was decided by this bench against the Revenue as per Final Order No. 930 and 931/04 dt. 20/10/04. A copy of this final order has been placed on record.

(3.) On a perusal of the Final Order cited by Ld. Counsel, I find that the issue in the instant appeals stands squarely covered in favour of the appellants. The ratio of the decision covered by the cited Final Order is contained in paras 5 and 6 thereof, extracted below: