Customs, Excise and Gold Tribunal - Bangalore
Tumkur Dist. Co-Op. Milk Producers ... vs Cce on 22 November, 2005
ORDER S.L. Peeran, Member (J)
1. In all these appeals, a common question of law and facts are involved and hence they are taken up together for disposal as per law. The issue in these appeals is as to whether the demands can be confirmed on the persons utilizing the services of Goods Transport Operators. The Apex Court, in the case of CCE, Meerut-II v. L.H. Sugar Factories Ltd. 2005 (187) E.L.T. 5 (S.C.) has held that where the Show Cause Notices have not been issued prior to amendment to protect demands, then the amendment brought under Section 71A of Finance Act would not be operative. The Northern Bench of the Tribunal, in the case of L.H. Sugar Factories Ltd. v. CCE, Meerut-II , followed the Supreme Court judgment rendered in the case of Laghu Udyog Bharati v. UOI , and has also held that the demands would not be sustainable if the Show Cause Notice has been issued after the amendment. All the Counsels submit that the admitted position in the present cases are that the Revenue did not protect their claim by issuing show Cause Notices prior to the amendment covering the persons utilizing the services of Goods Transport Operators. The learned Counsels also draw our attention to this Bench's order rendered in their own case, and in the case of M/s. Electronic Research Private Ltd. & two others rendered by Final Order Nos. 1199 to 1201/2005 dated 13-7-2005 allowing the appeals by applying the ratio of the Apex Court judgment and the Tribunal judgments.
2. The SDR reiterated the departmental view.
3. On a careful consideration and on perusal of the impugned orders, the fact that the Show Cause Notices have been issued after the amendment to the Finance Act is not disputed by the authorities. Retrospective amendment to the Finance Act made applicable the demands on the persons availing the services of Goods Transport Operators only if the Show Cause Notices have been issued to protect the demands before the amendment. As in the present cases, the Show Cause Notices admittedly have been issued after the amendment hence, the demands cannot be sustained. The orders are set aside in the light of the cited judgments by allowing the appeals with consequential relief, if any.
(Pronounced and dictated in open Court)