LEOTRONICS SCALES PVT. LTD. Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) THE appellant is in appeal against the impugned Order -in -Appeal in which the Commissioner (Appeals) has confirmed the demand of Rs. 5,09,888/ - alongwith interest and imposed penalties under sections 75A, 77 and 78 of Finance Act, 1994.

(2.) THE facts of the case are that the appellant are engaged in the manufacture of electronic Weigh Bridges. They are registered with the department under the category of Management, Maintenance and Repair service, Commercial or industrial construction services, and Transportation of goods by road service. They had executed annual maintenance contract with the parties to whom they sold weigh bridges. The Maintenance and Repair service was introduced in the Finance Act, 1994 with effect from 1.7.2003. In relation to annual maintenance contract signed before 1.7.2003, the appellant raised the bills prior to 1.7.2003 but the payments were received after 1.7.2003. The demand of Rs. 1,83,510/ - has been confirmed on the payments received after 1.7.2003 by invoking the extended period of limitation.

(3.) HEARD both sides and perused the records.