COMMISSIONER OF CENTRAL EXCISE Vs. DCW LTD.

JUDGEMENT

(1.) THIS appeal of the Revenue is against an order passed by the lower appellate authority holding the assessee not liable to pay Service tax in respect of "Clearing and Forwarding Service" received by them during the months of July -Aug. '99. After examining the records and hearing both sides, I find that the Service tax liability on a recipient of Clearing and Forwarding Service was limited to the period from 16 -7 -1997 to 16 -10 -1998 in terms of Section 116 of the Finance Act, 2000, which amended Sections 65, 66 and 67 of the Finance Act, 1994. The relevant portion of Section 116 ibid is reproduced below :

(2.) BY Section 117 of the Finance Act, 2000, Parliament retrospectively validated earlier collection of Service tax on Clearing and Forwarding Service. Ld. SDR has heavily relied on the provisions of Section 117 to argue that it was lawful for the Department to recover Service tax from the recipient in respect of the above service received by them during July -Aug. '99. Section 117 is, therefore, reproduced below :

(3.) LD . Counsel for the respondent has argued in defence of the impugned order. According to him, there was no parliamentary sanction for collecting Service tax on Clearing and Forwarding Service from recipients thereof for any period other than 16 -10 -1997 to 16 -10 -1998. The period of dispute in the instant case is beyond this period.