TCP LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) DURING the period 16 -7 -1997 to 31 -8 -1999, the appellants had utilised the services of M/s. Madras Industrial Product Corporation, Erode qua consignment agents. Two show cause notices were issued to them demanding Service Tax (with interest) and proposing penalties, one dated 21 -7 -2000 and the other dated 8 -4 -2002 covering the spells 16 -7 -1997 to 16 -10 -1998 and 17 -10 -1998 to 31 -8 -1999 respectively. Both the original authority and the first appellate authority confirmed the demand of tax against the party. The appellate authority however vacated the penalties imposed by the original authority. The present appeals are against the orders of the Commissioner (Appeals).

(2.) IT is submitted by Id. Counsel for the appellants that the demand of tax raised on them is hit by the Apex Court's ruling in Laghu Udyog Bharati v. Union of India . Reliance is also placed on the decision of this Bench in Commissioner of Central Excise v. EID Parry Confectionery Ltd. . The crucial fact pointed out by Id. Counsel, attracting the case law is that, in both the cases, the demand of Service Tax was raised in show cause notice issued after 12 -5 -2000.

(3.) LD . SDR reiterates the findings of the original and first appellate au thorities and also relies on the Supreme Court's judgment in Gujarat Ambuja Cements Ltd. v. Union of India in support of his contention that, by virtue of Section 117 of the Finance Act, 2000, recipients of services of consignment agents for the period covered by the said Section should have paid up the tax dues for such period within the extended period granted by the Apex Court in Para 44 read with Para 19 of its judgment.