CCE Vs. SREE NITHYAKALYANI TEXTILES LTD.

JUDGEMENT

(1.) In this appeal of the Revenue, the challenge is against dropping of a demand of Service Tax on the respondents. The respondents had availed the services of goods transport operators during the period 16.11.1997 to 1.6.1998 but did not pay any tax thereon under the Finance Act, 1994. On 19.12.2000, the Department issued a show -cause notice to them - -demanding Service Tax of Rs. 2,42,925/ - on freight charges of Rs. 48,58,490/ - paid by them to goods transport operators for the said period. The original authority confirmed this demand under Section 73 of the above Act and imposed penalties on the assessee under Sections 76, 77 and 78 of the Act. The first appellate authority set aside the order of the lower authority, in an appeal filed by the assessee. Hence the present appeal.

(2.) After examining the records and hearing both sides, I find that the lower appellate authority has rightly decided the case before it in terms of the Hon'ble Supreme Court's ruling in Laghu Udyog Bhatati v. Union of India and certain decisions of this Tribunal. Ld. Counsel for the respondents has cited the following decisions of the Tribunal: (i) Final Order No. 930 & 931/2004 dated 20.10.2004 in Appeal Nos. S/22 8b 39/2004 : 2004 (117) ECR 670 (T) Commissioner v. BID Parry Confectionery Ltd. and vice versa.

(3.) In the result, the Revenue's appeal fails and the same is rejected.