AWAL MANUFACTURING CO. Vs. CCE

JUDGEMENT

(1.) SERVICE tax of Rs. 10,017/ -alone with interest and penalty of Rs. 2,000/ - was levied on the appellants on the ground that during the period 16.11.1997 to 1.6.1998, the appellants were liable for service tax on utilising the service of the goods transport operators. The Commissioner (Appeals) upheld the order of the original authority. In the appeal petition, the appellants have pleaded that notification No. 43/97 -ST dated 5.11.1997 was retrospectively amended by the Finance Act, 2003 as per twelfth; schedule to the Finance Act, 2003 and in the notes to the Finance Bill, 2003, it has been specifically mentioned that clause 152 seeks to amend notification No. 43/97 -Service Tax, dated 5.11.1997 and to give it retrospective effect from 16.11.1997 so as to exempt service tax on goods transport operator services provided to small -scale industries registered with the State Government and a private limited company which is also a solely and exclusively trading company. The appellants have claimed that they are small scale unit and, therefore, their appeal should be allowed.

(2.) SHRI Bipin Verma, learned JDR pleads that even though in the orders of the lower authorities, it is mentioned that the appellants are SSI unit but in the notification No. 43/97 -ST dated 5.11.1997 as amended retrospectively from 16.11.1997. There is a condition that factory should be registered as SSI unit with the State Government and this aspect has not been examined by the lower authorities. Therefore, the case may be remanded back to the original authority to consider whether the appellants fulfil the conditions of the notification No. 43/97 -ST dated 5.11.1997 amended retrospectively and then pass a fresh order.

(3.) THE appeal is allowed by remand.