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of <h1>Court dismisses appeal on service tax for Goods Transport Operators, affirms no liability, penalties, or refunds</h1> <h3>Commissioner of C. Ex., Salem Versus Orient Abrasives</h3> The court dismissed the department's appeal challenging the demand of service tax on Goods Transport Operators' (GTO) service and the imposition of ... - Issues involved: Appeal challenging demand of service tax on Goods Transport Operators' (GTO) service and imposition of penalties.Summary:1. The judgment addresses two appeals, one by the department challenging the order setting aside the demand of service tax on GTO service and vacating penalties, and the other by an assessee challenging the order demanding service tax and imposing penalties for the same service during a specific period. 2. Both M/s. Orient Abrasives and M/s. Jayalakshmi Exports received GTO service during a certain period but did not pay tax on it. Later, they paid the tax on different dates. 3. During the relevant period, the assessees were not liable to pay service tax on GTO service as per the decision of the apex court in Laghu Udyog Bhartati v. Union of India. The Finance Act, 1994 was amended in 2000 to make GTO service beneficiaries liable to pay service tax retrospectively from the period in question. Show-cause notices were issued to the assessees accordingly. 4. A previous Tribunal decision held that GTO service recipients were not covered by certain provisions of the Finance Act, 1994, and show-cause notices issued to them were not maintainable. This decision was affirmed by the Supreme Court. 5. Following the Supreme Court decision, civil appeals were filed against similar Tribunal decisions, but there was no claim of a stay on those decisions. 6. The settled legal position based on the previous Tribunal decision is applied in the present case, leading to the dismissal of the department's appeal and the allowance of the assessees' appeal. 7. The respondents filed 'cross-objections' seeking a refund of the service tax and interest paid, but the prayer was not entertained due to lack of prior claim and voluntary payment without protest. The amounts paid were deemed non-refundable as per a previous Tribunal decision.Separate Judgment: None.
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