BALCO Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal has come up for hearing on the point of waiver of pre -deposit and stay. As per the impugned order the appellant is required to pre -deposit Rs. 31,30,266/ - as service tax along with education cess and amounts of penalties under Sections 76 and 77 of the Finance Act, 1994 to maintain this appeal in terms of Section 35F of the Central Excise Act.

(2.) THE appellant has entered into agreement with M/s. Guiyang Aluminium -Magnesium Design and Research (GAMI), a Chinese Company, for transfer of technology to build a 245 KT/Y Aluminium Smelter with 150 KT/Y Anode Plant for production of aluminium. The agreement broadly involves transfer of designs & drawings, training and technical assistance. For the technical assistance part, the appellant is already paying service tax. The disputes relates to designs & drawings and training.

(3.) THE appellant was not liable to pay any service tax. It is also the case of the appellant the impugned demand is time -barred, and in any view of the matter, as the appellant is entitled to avail Cenvat credit of service tax paid on input services, the whole proceeding for recovery of service tax is a revenue neutral exercise.