PIONEER PRESS PVT. LTD. Vs. CCE (ST)

JUDGEMENT

(1.) M /s. Pioneer Press Pvt. Ltd., (PPPL) Sivakasi, has filed this application to waive the predeposit of Service Tax of an amount of Rs. 15,930/ - (with interest) and stay of its recovery till the disposal of the appeal. As the appellants have prayed for a decision on merits, after waiving the requirement of predeposit, the appeal itself is taken up for final disposal.

(2.) PPPL availed Goods Transport Operator's (GTO) service during the period 16.11.97 to 01.06.98. They had not paid the tax due on the service availed. After due process of law, the jurisdictional Commissioner dropped the proposal to demand the service tax from PPPL on the ground that the class of persons who had availed GTO service came under Section 71A of the Finance Act'94 (the Act) and tax due from them could not be demanded by invoking Section 73 of the Act. In arriving at the above decision, the original authority had followed the decision of the CESTAT in the case of L.H. Sugar Factories Ltd. v. CCE, Meerut affirmed by the Apex Court in 2005 (187) ELT 5 (S.C.).

(3.) THE impugned order has been passed by the Commissioner in revision of the order of the Deputy Commissioner in terms of Section 84 of the Act. The Commissioner observed that a subsequent appeal involving the same dispute as covered by L.H. Sugar Factories Ltd. (supra) stood admitted by the Hon'ble Supreme Court and that the ratio had not attained finality. He found that on a harmonious reading of the provisions of Section 68, 71A, erstwhile Section 71 and Section 73, it became clear that a demand under Section 73 could be raised against a person covered by the erstwhile Section 71A also. Accordingly, he confirmed the demand of Rs. 15,930/ - (and interest) under Section 73 read with erstwhile Section 71A of the Act.