2008 (10) TMI 126 - AT - Service Tax

Demand towards service tax under the category of GTO service rendered during 16-11-1997 to 1-6-1998 was set aside by Commissioner - impugned order has been passed relying on a decision of the Tribunal where demand was vacated on the ground that section 73 could not be validly invoked to demand service tax on GTO service rendered during the material period - decision of the Tribunal upheld by SC in L. H. Sugar Factories Ltd - appeal filed by the revenue against Commissioner s order is dismissed

Summary

The Appellate Tribunal CESTAT, Chennai heard an appeal filed by the revenue regarding a demand for service tax under the category of "Goods Transport Operator" service. The Commissioner (Appeals) vacated the original authority's order demanding Rs. 1,08,961 from the respondents. The impugned order was based on a Tribunal decision that section 73 of the Finance Act, 1994 could not be invoked for such demands. The Tribunal's decision was upheld by the Apex Court in CCE v. L. H. Sugar Factories Ltd 2005 (187) ELT 5/2 STT 282. Consequently, the impugned order was sustained, and the revenue's appeal was dismissed.