Customs, Excise and Gold Tribunal - Bangalore
Sti Products India Ltd. vs Cce on 23 June, 2005
ORDER S.L. Peeran, Member (J)
1. The appellant is seeking waiver of pre-deposit of Service Tax amount of Rs. 1,81,565/- and penalty of Rs. 100/- per day in terms of Section 76 and Rs. 1000/- in terms of Section 77 of the Finance Act, 1994. The appellants have manufactured ERW Precision Steel Tubes. For the purpose of business, they utilised the services of Goods Transport Operators. The Goods Transport Operators were brought under Service Tax by notification which was amended later to include those who took the services. The matter was considered by the Apex Court in the case of Laghu Udyog Bharati v. Union of India reported in 1998 (112) ELT 365 (S.C.) : 1999 (84) ECR 53 (SC) by which provisions of Finance Act, has been held to be a ultra vires. Therefore, duty during the period in question is not required to be collected in the facts and circumstances of the case. The learned Counsel relied on several citations in support of his claim.
2. The learned SDR submits that even if after the amendment of the Finance Act, the notification has been held to be operative for the earlier period as in the case of LH Sugar Factories Ltd. v. CCE . Further he stated that the Apex Court in the case of Gujarat Ambuja Cements Ltd. v. Union of India has clarified the ruling rendered in the case of Laghu Udyog Bharati (supra).
3. On a careful consideration of the submissions made by both the sides, we notice that the very issue has already been decided by the Apex Court in the case of Gujarat Ambuja Cements Ltd. (supra). The Larger Bench of the Tribunal has also held that duty demand cannot be confirmed from the service providers for the period in question. In view of the judgments cited above by the learned Counsel, the pre-deposit of service tax is waived including penalty and its recovery stayed till the disposal of the appeal. The stay application is allowed. The matter should be placed in its turn for final hearing before Single Member Bench.
(Pronounced and dictated in the open court)