DOLLAR COMPANY PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THE appellants had paid service tax of Rs. 99,405/ - for the period 16.7.97 to 31.7.99 in respect of Clearing and Forwarding Agents' Service received by them. After the Hon'ble Supreme Court struck down the provisions of Rule 2(1)(d)(xii) and (xvii) of the Service Tax Rules, 1994 as ultra vires the Finance Act, 1994, in the case of Laghu Udyog Bharti and Anr. v. Union of India, the appellants claimed refund of the above amount of service tax, which was granted by the Asst. Commissioner. Later, after the Finance Act, 2000 came into force revalidating the aforesaid provisions struck down by the apex court and amending certain sections of the Finance Act, 1994, they repaid an amount of Rs. 54,230/ - being the service tax covering the period from 16.7.97 to 15.10.98. The Asst. Commissioner's order was revised by the Commissioner on 9.4.2001 under Section 84 of the Finance Act, 1994 ordering recovery of service tax of Rs. 45,175/ - from the assessee for the period 16.10.98 to 31.7.99. The present appeal of the assessee is against the revisional order of the Commissioner.

(2.) AFTER hearing both sides, we note that the question to be considered is whether the service tax liability on a recipient of Clearing and Forwarding Agents Service, in terms of Section 116 of the Finance Act, 2000, is limited to the period from 16.7.97 to 15.10.98 as claimed by the appellants. This question is already covered in favour of the party by this Tribunal's decision in Commissioner v. DCW Ltd. 2006 (1) STR 298 (Tri. -Chennai) and Commissioner v. Orient Cements 2007 (7) STR 649 (Tri. -Bang.). Para -4 of the Tribunal's order in DCW case is reproduced below:

(3.) FOLLOWING the cited case law, we set aside the impugned order and allow this appeal.