2009 (11) TMI 627

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.... [Judgment]. - The petitioner is a Company engaged in the manufacture of cotton yarn. In order to transport cotton yarn so manufactured by the Company, the Company engages the services of transporters. For the first time in 1997, the Parliament introduced levy of service tax on services rendered by goods transport operators. In respect of the same, a question arose as to whether customers eng....

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....gaging the service of the goods service operators were made liable to pay service tax during the period between 16-7-1997 and 15-10-1998. By Section 117, certain actions taken under the Service Tax Rules, 1994, which were struck down by the Supreme Court as per the above judgment were validated. This original petition is filed by the petitioner challenging the constitutional validity of Sections 1....

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....s : "(i) Call for the records leading to Exts. P2 demand notice issued to the petitioner by the third respondent and quash the same by the issuance of a writ of certiorari or such other writ, order or direction; (ii) declare that the amendments to Sections 65 and 66 of Act 32 of 1994 by Sections 116 and 117 of the Finance Act, 2000 with retrospective effect from 16-7-1997 is illega....

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....oncerned, the Supreme Court has in J.K. Cotton Spinning and Weaving Mills Ltd. and Another v. Union of India and Others, 1987 (32) E.L.T. 234 has held that even if a provision is amended with retrospective effect, the Department can proceed with the demand only if the matter was kept alive at the time when the original provision was in force. Otherwise, no action can be initiated afresh after the ....