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TMI Blog2008 (2) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... D.N. Panda, Member (J) Shri Y. S. Loni, JDR, for the Appellant. S/Shri J. P. Khaitan, Sr. Advocate along with Arvind Baheti, Advocate, for the Respondent. [Order per : Chittaranjan Satapathy, Member (T)]. 1. Heard both the sides. The brief facts of the case are as under :- (1) On December 14, 2001, a show cause notice was issued under Section 68 of the Finance Act, 1994 ( the Act ) for recovery of service tax of ₹ 12,58,740/-, with interest under Section 75, on goods transport service received by the respondent during the period July 16, 1997 to June 1, 1998. The notice stated that the liability for the said period was ₹ 16,87,327/- of which the respondent had paid ₹ 4,28,587/-. The notice also p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of the levy on goods transport service which is as under 1997 1. Goods transport service was made taxable vide Section 65(4)(m) by amendment of the Act by the Finance Act, 1997. 2. The levy was to become effective upon notification in terms of Section 66(3) of the Act. 3. Under Section 68(1A), service tax was to be collected from such person and in such manner as was to be prescribed and such person was to be treated as the person responsible for collecting the service tax. 4. By notification bearing No. 41/97-ST dated November 5, 1997, the levy was made effective from November 16, 1997. 5. By Notification bearing No. 42/97-ST dated November 5, 1997, Rule 2(1)(d)(xvii) of the Service Tax Rules, 1944 ( the Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act as modified with effect from July 16, 1997. A proviso was inserted below Section 68(1) making the customer of the goods transport operator as the person liable to pay service tax to the credit of the Central Government. Section 71A was inserted making the customer liable to furnish service tax return within six months from the date on which the Finance Bill, 2003 received the assent of the President. The rule-making power Section 94 was amended to include the making of rule for furnishing the return under Section 71A. 2. Rule 7A was inserted in the Rules with effect from May 14, 2003 providing for furnishing of return by the customer of a goods transport operator for the period November 16, 1997 to June 2, 1998 within a period o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransport operator for whom provision for filing return was made vide Section 71A inserted by the Finance Act, 2003 and by making Rule 7A on May 14, 2003. (3) Section 73 was amended only with effect from September 10, 2004 to rope in the situation covered by Section 71A and Rule 7A. (4) The contention that Section 73 as it stood before the amendment by the Finance Act, 2004 could not be invoked in a case where Section 71A applied finds support from the decision of this Hon'ble Tribunal in L.H. Sugar Factories v. Commissioner of Central Excise - 2006 (3) S.T.R. 230 = 2004 (165) E.L.T. 161 (Tribunal) which has been upheld by the Hon'ble Supreme Court in Commissioner of Central Excise v. L.H. Sugar Factories Ltd. - 2006 (3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals setting aside the impugned order in that case. 4. We find that in the instant case the show cause notice was issued in December, 2001. In view of the fact that the Tribunal's decision in L.H. Sugar (cited supra) has been subsequently upheld by the Hon'ble Supreme Court, we are left with no option, but to apply the ratio of L.H. Sugar (cited supra) to the present case and hold that the demand is not sustainable. We note that the Supreme Court, dealing with the Department's Appeal in L.H. Sugar case entirely agreed with the conclusion arrived at by the Tribunal and found no merit in the Department's Appeal. 5. While rejecting the Department's Appeal following the decision of the Tribunal in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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