CCE Vs. TTK HEALTH CARE LTD.

JUDGEMENT

(1.) THIS appeal of the Revenue is against the direction issued by the lower appellate authority for refund of the service tax paid by the respondents for the services of clearing and forward agents availed by them from 16.10.1998 to 31.8.1999. The respondents had paid an amount of Rs. 27,19,123/ - as service tax in the above category during the period from 16.7.1997 to 31.8.1999. However, in terms of the Hon'ble Supreme Court's ruling in Laghu Udyog Bharathi case , the department refunded the amount to the party. Later on, after the amendment of Section 65 of the Finance Act, 1994 with retrospective effect under Sections 116 and 117 of the Finance Act, 2000, the department issued a show -cause notice to recover the amount from the respondents. This demand was contested on legal grounds. In adjudication of the dispute, the original authority confirmed the demand of tax (with interest thereon) against the party. In an appeal, the party reiterated their stand that the retrospective amendment of Section 65 of the Finance Act, 1994 was valid only for the period from 16.7.1997 to 16.10.1999 and therefore they were not liable to repay the service tax paid by them for the subsequent period. The learned Commissioner (Appeals) accepted this argument. Hence the present appeal of the Revenue.

(2.) AFTER hearing the learned SDR for the appellant and the learned consultant for the respondents, we note that an identical issue was considered by this Bench in Final Order No. 379/2008 dated 23.4.2008 in Appeal No. S/12/2001 Dollar Company Pvt. Ltd. v. CCE, Chennai. Para 2 of the said final order is reproduced below:

(3.) FOLLOWING the above decision, we sustain the impugned order and dismiss this appeal. (Dictated and pronounced in open court)