2009 (1) TMI 196 - AT - Service Tax

Clearing and Forwarding Agents Service Demand of Service Tax The same issue Apex Court has since been decided against the revenue in the judgment in CCE v. Gujarat Carbon & Industries Ltd. Revenue Appeal dismissed

Summary

Issues:
Appeal against demand of service tax under 'Clearing and Forwarding Agents Service' from 16-7-1997 to 31-8-1998. Interpretation of Apex Court judgments in CCE v. L.H. Sugar Factories Ltd. and CCE v. Gujarat Carbon & Industries Ltd. Dispute settlement based on settled judgments.

Analysis:
The appeal was filed by the revenue challenging an order that vacated a demand of service tax under the category of 'Clearing and Forwarding Agents Service' provided by the respondents between 16-7-1997 to 31-8-1998. The Commissioner had relied on the Apex Court's judgment in CCE v. L.H. Sugar Factories Ltd. The revenue contended that the Tribunal's order in CCE v. Gujarat Carbon & Industries Ltd. had been appealed and admitted by the Apex Court, which laid down a similar ratio as the L.H. Sugar Factories Ltd. case. However, the respondents sought an adjournment, and it was revealed that the appeal in the Gujarat Carbon & Industries Ltd.'s case had been decided against the revenue by the Apex Court in a subsequent judgment.

Upon careful consideration, the Technical Member found that the impugned order was consistent with the ratios established in the Apex Court's judgments in both the L.H. Sugar Factories Ltd. case and the Gujarat Carbon & Industries Ltd.'s case. Consequently, as the dispute had been settled by the Apex Court's judgments, the impugned order did not warrant any intervention. Therefore, the appeal filed by the revenue was dismissed, affirming the decision of the lower appellate authority.