CADBURY INDIA LTD. Vs. CCE

JUDGEMENT

(1.) HEARD both sides. The lower authorities have confirmed a demand of Rs. 1,21,31,000/ - towards service tax and have imposed a penalty of Rs. 2,42,62,000/ - for the period July 1997 to September 2001 on the ground that the appellants received services from M/s Cadbury Schweppes Overseas Ltd. (CSOL) which was in the nature of services provided by a 'Consulting Engineer'. The appellants have advanced two main arguments: -

(2.) THE appellants have also cited the following case laws in support of their arguments: -

(3.) AFTER going through the submissions and the case records, we find that the period of dispute is clearly prior to amendment of Rule 2(1) (b) of the service Tax Rules, 1994. Since only through this amendment liability to pay service tax was fastened unto a service recipient and the said amendment is prospective, the appellants cannot be made to pay any service tax for the period July 1997 to September 2001 which is prior to the amendment of the rules. Therefore, we are of the view that the impugned demand and penalty cannot be sustained.